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ETF and Currency Effects - (USD & GBP) VWRL

Index tracking funds and ETFs
monabri
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ETF and Currency Effects - (USD & GBP) VWRL

#242815

Postby monabri » August 8th, 2019, 6:36 pm

Spurred on by another post regarding how much of the return on say VWRL is due to share performance and how much is due to currency movement - I found this link to the justETF site.

https://www.justetf.com/uk/etf-profile. ... ab=returns

This is the one for VWRL. My interpretation
-The effect of the fall in Sterling over the last 3 years has amplified returns to ~38% compared to the baseline USD currency of ~28%.
-IF, we get a good Brexit deal (I did use the word "IF"), Sterling might strengthen and the returns will not be as great.



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StOmer
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Re: ETF and Currency Effects - (USD & GBP) VWRL

#242865

Postby StOmer » August 8th, 2019, 10:16 pm

I've been looking at ETF's recently and found the justetf site a pretty good resource. I still haven't got my head around them completely but I'm thinking they could be a good option if I need to avoid stamp duty charges during current volatility and very tight discounts on Investment Trusts. I've mostly been looking at iShares, Vanguard and Lyxxor so will have to look at currencies etc before jumping into that ship

MartynC27
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Re: ETF and Currency Effects - (USD & GBP) VWRL

#255979

Postby MartynC27 » October 5th, 2019, 12:00 am

If you believe the pound will increase against the other major currencies you could move some of your money into hedged ETF's.
I have moved about 25% of my ETF portfolio into Hedged ETFs. These cost more but the Hedged Regional ETfs for US, Euro Area and Japan have lower charges than the all world Hedged iShares etf (IGWD).

Obviously if the pound falls I will lose out on this 25% of my portfolio.

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MartynC27
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Re: ETF and Currency Effects - (USD & GBP) VWRL

#256775

Postby MartynC27 » October 9th, 2019, 1:09 pm

Has any one else used Hedged ETFs or other investments in their portfolio and if so which one(s) ?


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