ETF U.S ETF exchange rate spread

Discussion in 'Shares & Funds' started by HHH__, 12th May, 2020.

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  1. HHH__

    HHH__ Active Member

    Joined:
    1st Jul, 2015
    Posts:
    42
    Location:
    Queensland
    Hi everyone

    How can I find what the exchange rate spread that U.S based etfs from say blackrock or vanguard use when we buy into their funds based in the U.S (s&p 500 etf for example)

    thank you
     
  2. twisted strategies

    twisted strategies Well-Known Member

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    Location:
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    WOW , precisely the question i couldn't answer with i looked at similar ETFs

    so i avoided foreign domiciled ETFs and currency hedged ones as well

    so i hold locally domiciled ( but foreign focused ) ETFs that are NOT currency hedged , and put on the seat-belt , sometimes FX will be my friend and sometimes not .... for a bumpy ride .

    trying to pick to exchange rate in a given hour ( let alone day ) can be a moving target

    i ended up buying LICs ( listed on the ASX ) to give exposure to that sector and YES the fees are higher BUT i know precisely what i am paying the moment the order goes through

    cheers
     
  3. HHH__

    HHH__ Active Member

    Joined:
    1st Jul, 2015
    Posts:
    42
    Location:
    Queensland
    Thanks for the reply

    Since I posted the question i have found a broker that places the trade virtually at the mid market Exchange rate (they only charge 2 basis points which is great)

    I was going to stick with aus domiciled etfs where possible but I couldn’t imagine their Internal exchange rate being any better than that? plus the broker fees are lower than any Aus broker I can find.

    I too prefer unhedged. I may look at it wrongly but hedging means you guessing what the currency is going to do anyway by assuming it’s not going to be where you want it to be. If that makes sense.
     
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  4. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    1,461
    Location:
    QLD
    i used to to hold company that was crippled by bad FX bets ( had offices in many countries so needed to shift cash across most of the Europe , US , and South East Asia )

    well the way you look at it SHOULD be the way it affects YOU

    sometimes FX makes wonderful sense for you , it just didn't for me

    however don't be shocked if some other members message you for the name of the broker

    hope the outcome is good for you

    cheers
     

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