---
title: "Hedged share class"
description: "A hedged share class uses currency forwards to reduce the effect of exchange-rate moves between the fund's underlying currencies and the currency of the share class."
canonical: https://fundfactsapi.com/glossary/hedged-share-class
published: 2026-09-04
updated: 2026-09-04
publisher: FundFacts API
---

# Hedged share class (Currency-hedged share class, EUR Hedged, Hedged ETF, H share class)

> A hedged share class uses currency forwards to reduce the effect of exchange-rate moves between the fund's underlying currencies and the currency of the share class.

## Definition

A **hedged share class** is a [share class](https://fundfactsapi.com/glossary/share-class) that aims to remove most of the currency risk between the assets the fund holds and the currency the class is denominated in. A EUR-hedged class of a US equity fund sells US dollars forward against euros, typically rolling one-month contracts, so that a fall in the dollar does not reduce the euro value of the holdings. Fund names flag it with "Hedged", "H" or "(EUR Hedged)", and each hedged class has its own ISIN.

## Why it matters

Currency moves can dominate short-term returns for investors buying foreign-currency assets. Hedging trades that risk for a cost roughly equal to the interest-rate differential between the two currencies plus transaction costs, which can be positive or negative. Hedged and unhedged classes of the same fund therefore show different returns, volatility and even different risk indicators in their KIDs.

## In the API

The class label in `shareClass` states whether the class is hedged and the denomination is in `keyFacts.currency`. Example values:

```json
{
  "shareClass": "EUR Hedged Acc",
  "keyFacts": { "currency": "EUR", "distribution": "Accumulating" },
  "headlineMetrics": { "volatility3y": 15.8 }
}
```

## Common pitfalls

A share class denominated in euros is not automatically hedged; an unhedged EUR class of a USD fund simply converts the NAV and carries full currency exposure. Hedging is never perfect: intra-month flows and market moves leave a residual. Performance comparisons between hedged and unhedged classes are only meaningful in the context of the currency pair over the period.

## In the FundFacts API payload

- `shareClass`
- `keyFacts.currency`

## About FundFacts API

FundFacts turns any fund or ETF ISIN into one dated factsheet (fees and KID costs, the 1–7 risk indicator, holdings, sector and country exposure, returns) read from the fund house's own documents: as a client-ready PDF under your firm's name for advisers and wealth managers, as JSON through its API for developers, or inside ChatGPT and Claude through its MCP server.

FundFacts works inside ChatGPT and Claude as a connector (a remote MCP server): ask about any fund or ETF by ISIN, ticker or name and the assistant answers from FundFacts' dated figures, fees, risk, holdings, exposure and returns, with fund cards, side-by-side comparisons, holdings overlap and portfolio look-through.

- Free API key, no card: https://fundfactsapi.com/signup
- Documentation: https://fundfactsapi.com/docs (OpenAPI: https://fundfactsapi.com/openapi.json)
- MCP server: https://fundfactsapi.com/api/mcp (set-up for every client: https://fundfactsapi.com/mcp-server)
- Pricing: https://fundfactsapi.com/pricing
- Site index for AI assistants: https://fundfactsapi.com/llms.txt
- Informational data, not investment advice.