US stocks in ringgit: S&P 500 +20.3% in USD, only +15.8% in MYR
The ringgit strengthened against the US dollar between August 2025 and August 2026, so Malaysians holding US stocks unhedged earned less than the US-dollar return. The gap, the formula, the timing effect and what hedging costs at an OPR of 2.75%.
How much did the ringgit move against the US dollar in 2025–2026?
The ringgit strengthened: its monthly average went from 4.2266 per US dollar in August 2025 to 4.0687 in August 2026, 3.7% fewer ringgit per dollar, with the strongest month of 2026 in February at 3.9146 (Bank Negara Malaysia middle rate via OpenDOSM). A lower number means a stronger ringgit.
| Month | Ringgit per US$ (monthly average) | Role in this note |
|---|---|---|
| Aug 2025 | 4.2266 | Start of the one-year window |
| Dec 2025 | 4.0919 | Start of the year-to-date window |
| Feb 2026 | 3.9146 | Strongest month of 2026 |
| Jul 2026 | 4.0825 | Weakest month of 2026 |
| Aug 2026 | 4.0687 | Latest month used here |
Daily rates tell a slightly different story. On the US Federal Reserve’s noon buying rates (FRED DEXMAUS) the ringgit was strongest in 2026 on 26 February at 3.8864 and weakest on 22 June at 4.1455, and stood at 4.0707 on 25 September 2026. The weakest day falls in June while the weakest monthly average is July; that is normal when a currency spikes briefly and then settles. The two series come from different sources and are kept in separate tables.
How much did US stocks return in ringgit compared with US dollars?
Over the year to August 2026 the S&P 500 returned 20.3% in US dollars and 15.8% in ringgit, and the Nasdaq-100 25.8% and 21.1%, on monthly averages of daily closes (FRED SP500, FRED NASDAQ100).
How much did US stocks return in ringgit compared with US dollars?
Return in ringgit
Shared linear scale from zero. Selected entries from the table below. Its dates, units, definitions and limitations still apply.
| Window (monthly averages) | Index | Return in US$ | Return in ringgit | Change in ringgit per US$ |
|---|---|---|---|---|
| Aug 2025 → Aug 2026 | S&P 500 | +20.3% | +15.8% | −3.7% |
| Aug 2025 → Aug 2026 | Nasdaq-100 | +25.8% | +21.1% | −3.7% |
| Dec 2025 → Aug 2026 | S&P 500 | +12.5% | +11.9% | −0.6% |
| Dec 2025 → Aug 2026 | Nasdaq-100 | +16.0% | +15.3% | −0.6% |
Gap between the S&P 500's one-year return in US dollars (+20.3%) and in ringgit (+15.8%), August 2025 to August 2026, monthly averages (calculated from FRED and BNM data)
Most of the currency effect came in late 2025 and early 2026. From December 2025 the ringgit moved only 0.6%, so the year-to-date gap is under one percentage point.
On daily data the picture is similar for the year but not for the year to date. From 25 September 2025 (4.21) to 25 September 2026 (4.0707) the S&P 500 rose 17.2% in US dollars and 13.4% in ringgit, and the Nasdaq-100 25.5% and 21.3%. From 31 December 2025 (4.056) the ringgit was 0.4% weaker by 25 September, so the S&P 500 did slightly better in ringgit (+13.5%) than in US dollars (+13.1%). Which answer you get depends on whether you compare averages or single days.
How do you calculate the ringgit return? A worked example with RM10,000
Return in ringgit = (1 + return in US dollars) × (1 + change in ringgit per US dollar) − 1. For the S&P 500 over the year to August 2026: 1.203 × 0.963 − 1 = +15.8%.
With money, using the monthly averages (calculated, ignoring fees, FX spreads, dividends and taxes):
- RM10,000 converted at 4.2266 in August 2025 buys about US$2,366.
- The S&P 500’s 20.3% rise takes that to about US$2,847.
- Converted back at 4.0687 in August 2026, it is worth about RM11,583.
Had the rate stayed at 4.2266, the same US$2,847 would have come back as about RM12,032. The stronger ringgit cost this example roughly RM449, even though the investment itself did well.
What if you bought when the ringgit was weakest in 2026?
Entry timing moved the result more than the full-year average. Buying US stocks on the ringgit’s weakest day of 2026 meant paying the most ringgit per dollar, and its later recovery ate into the gain (FRED H.10 noon rates and index closes).
| Bought on (to 25 Sep 2026) | Ringgit per US$ at entry | S&P 500 in US$ | S&P 500 in ringgit | Nasdaq-100 in US$ | Nasdaq-100 in ringgit |
|---|---|---|---|---|---|
| 22 Jun 2026, weakest day | 4.1455 | +3.6% | +1.8% | +0.9% | −1.0% |
| 26 Feb 2026, strongest day | 3.8864 | +12.1% | +17.4% | +22.3% | +28.1% |
A Nasdaq-100 position opened on 22 June was up in US dollars but down in ringgit three months later. The mirror case also holds: buying on the ringgit’s strongest day and holding while it weakened added five to six percentage points in ringgit terms.
How do Malaysians hold US stocks, and what rules apply?
Most individuals use one of two routes: buying US-listed shares or ETFs through a broker account in US dollars, or buying a local unit trust that invests in US equities, often through a feeder structure. Many local funds offer an unhedged ringgit class and a MYR-hedged class of the same fund; the unhedged class carries the full currency effect described above, while the hedged class aims to remove most of it (AHAM Asset Management; currency risk in unit trusts is also explained by the Securities Commission’s InvestSmart).
Two rules shape the arithmetic:
- Foreign exchange policy. Under BNM Foreign Exchange Policy Notice 3, a resident individual without domestic ringgit borrowing may invest in foreign currency assets up to any amount. An individual with domestic ringgit borrowing may invest up to RM1 million equivalent per calendar year using converted ringgit and related sources, while funds sourced from abroad are treated separately.
- US tax on dividends. Malaysia does not appear on the IRS list of countries with a US income tax treaty (IRS, A to Z), and US-source dividends paid to non-resident aliens fall under the 30% rate for FDAP income unless a treaty lowers it (IRS, FDAP income). The index returns in this note exclude dividends, so this tax does not change the tables, but it does change what a real investor keeps.
Hedged or unhedged: what does removing the currency effect cost?
A currency hedge gives up or gains roughly the difference between the two interest rates. The Federal Reserve raised its target range to 3.75–4.00% on 16 September 2026 (FOMC statement), and Bank Negara Malaysia kept the OPR at 2.75% on 3 September 2026 (BNM), where it has been since a cut on 9 July 2025 (BNM). With US rates above Malaysian rates, a ringgit investor who hedges US-dollar assets back to ringgit gives up about 1.0 to 1.25 percentage points a year at current settings.
An approximation, not a price. The actual hedging cost depends on forward rates at the time, the tenor, bank spreads and fund expenses, and the rate gap was different at other points in the past year. Over the year to August 2026 an unhedged S&P 500 holder lost about 4.5 percentage points of return to the currency; a hedged holder would have avoided most of that while paying the rate gap. In a year when the ringgit weakens, the trade runs the other way.
Who else gains or loses when the ringgit strengthens?
Importers paying US-dollar invoices need fewer ringgit: US$1,000 cost about RM4,227 at the August 2025 average and about RM4,069 at the August 2026 average (calculated). Malaysians travelling to, studying in or paying subscriptions from the United States gain in the same way. Exporters who earn US dollars and convert them receive fewer ringgit per dollar, which is the other side of the same move. Why the ringgit strengthened in the first place is a balance-of-payments question, covered in Malaysia’s surplus and the ringgit.
What this comparison leaves out
Returns use monthly averages of daily index closes and of the BNM middle rate, so they differ from any single day's result. The S&P 500 and Nasdaq-100 series are price indices without dividends. FX spreads, platform and fund fees, and taxes are excluded. The daily table uses Federal Reserve noon buying rates in New York, a different series from BNM's middle rate, and the two are not mixed. CapsWindow does not forecast exchange rates, and nothing here is a view on where the ringgit or US stocks will go next.
To compare a ringgit amount across dates on several bases, including US-dollar benchmarks, see US benchmarks in ringgit or run your own numbers.
Questions & answers
Why are my US stock returns lower in ringgit than in US dollars?
Because the ringgit strengthened. The monthly average rate fell from 4.2266 ringgit per dollar in August 2025 to 4.0687 in August 2026, so each US dollar of gains converted into fewer ringgit. Over that year the S&P 500 rose 20.3% in US dollars and 15.8% in ringgit.
How do I work out a US stock return in ringgit?
Multiply one plus the US-dollar return by one plus the change in ringgit per dollar, then subtract one. For August 2025 to August 2026: 1.203 × 0.963 − 1 = +15.8%. RM10,000 invested in the S&P 500 at the start would have been worth about RM11,583 at the end, before fees, dividends and taxes (calculated).
Does a MYR-hedged class remove the currency effect?
Mostly, but not for free. A hedged class gives up or gains roughly the difference between US and Malaysian interest rates. With the Fed range at 3.75–4.00% and the OPR at 2.75% in September 2026, that is about 1.0 to 1.25 percentage points a year, an approximation that varies with forward rates and fund costs.
Is there a limit on how much a Malaysian can invest in US stocks?
Under Bank Negara Malaysia's Foreign Exchange Policy Notice 3, a resident individual without domestic ringgit borrowing may invest in foreign currency assets up to any amount. One with domestic ringgit borrowing may use converted ringgit for up to RM1 million equivalent per calendar year, with other sources treated separately. Check the notice for the exact definitions.
Source
- FRED — S&P 500 (SP500), daily close ↗
- FRED — NASDAQ-100 (NASDAQ100), daily close ↗
- FRED — Malaysian ringgit to US dollar spot rate, H.10 noon buying rate (DEXMAUS) ↗
- OpenDOSM — Exchange rates (Bank Negara Malaysia middle rate, monthly average) ↗
- Bank Negara Malaysia — Monetary Policy Statement, 3 September 2026 ↗
- Bank Negara Malaysia — Monetary Policy Statement, 9 July 2025 ↗
- Federal Reserve — FOMC statement, 16 September 2026 ↗
- Bank Negara Malaysia — Foreign Exchange Policy Notice 3: Investment in Foreign Currency Asset ↗
- IRS — United States income tax treaties, A to Z ↗
- IRS — Fixed, determinable, annual, periodical (FDAP) income ↗
- AHAM Asset Management — Hedged vs unhedged currency class ↗
- Securities Commission Malaysia InvestSmart — The risks of investing in unit trust funds ↗
- CapsWindow · Data & methodology ↗