The S&P 500 fell, so why didn't you feel it in your investment portfolio?

The S&P 500 has dropped about 5% from its peak, but the strengthening of the dollar against the shekel has offset much of the losses for Israeli investors in unhedged ETFs. The article explains the offset mechanism, compares Israeli and American funds, and presents the option of a currency-hedged fund.

The S&P 500 index has lost about 5% from its peak recorded about a month ago, and in the past week it fell by about 3%. However, an Israeli investor exposed to the index through an unhedged Israeli ETF lost much less, thanks to the strengthening of the dollar against the shekel, which offset a significant portion of the declines. The article explains how this mechanism works: a 3% drop in the index, offset by a 2% strengthening of the dollar, results in a loss of only 1.06%. It presents various investment options – Israeli funds such as Migdal (number 5117536) versus American funds like IVV and VOO (management fees 0.03%) and SPY (0.09%) – and notes that currency-hedged funds, such as Harel (number 1149137), charge higher management fees. The article does not constitute investment advice.