ETFs are commonly traded in Sterling, US Dollars and Euros. For non-UK indices (such as the S&P 500) the ETF is often traded in US Dollars and Sterling, giving investors a choice. However, while a Dollar-based ETF may also trade in Sterling, it is still at risk of currency fluctuations. We consider this currency risk when investing in an ETF and in certain circumstances may invest in a “currency hedged” version of a fund to mitigate the risk.