A CAD-hedged ETF is an ETF designed to “hedge” foreign currency exposure. This structure can reduce the risk of owning foreign currency-denominated securities by locking in forward foreign exchange contracts, enabling the ETF to set an exchange rate for a certain period. Due to this structure, these ETFs have a higher cost than a non-currency-hedged strategy. This type of ETF could be suitable for investors looking to potentially reduce currency risk in their portfolio.