Canadian Stock Traders Lose Out With job Currency-Hedged Receipts

(Bloomberg) — Canadian stock investors who embraced a unique kind of depositary receipt that hedges against currency fluctuations ended up losing out because of the greenback’s gains.The securities from Canadian Imperial Bank of Commerce debuted about a year ago with a novel offer — the chance for Canadians to buy US equities without having to convert their loonies to US dollars or worry about exchange-rate risk. Instead, the depositary receipts came with annual costs of as high as 0.6% that protected against US dollar weakness.