Hi guys. I am trying to update my portfolio by adding some ETFs which in my opinion make my portfolio more diversified (what do you think?).
But having in mind I live in Europe and the most of this ETFs currency is GBP… My question is… Is there any alternative in Euros? I don’t want to be affected by FX impact. What are your thoughts?
Unless it’s in euros you will always have an fx impact, I’m not into etfs though so hopefully someone else will come along and help out
Thanks. What’s the reason you are not into ETFs? Just curiosity
Fairly hands off trading, I’m trying to learn as I go so individually trading stocks help to learn
Considering that T212 does not charge for currency conversion, the impact is 0.
Whatever impacts the stocks within the ETF, you cannot avoid, but on the actual conversion you won’t be paying any fees, hence as far as I can see it, there is no impact.
Currency fluctuations still mean fx has an impact, bought and sold at the wrong times can lead to -5% fx or more
In fact most of my portfolio is red even tho the stocks are more expensive than when I bought them but still red because the FX impact is affecting negatively. That’s why I am looking for ETFs in Euro hence my question.
You can change your chosen currency when you open the account, I’m not sure if technical help could change this for you after
Not really because the shares in the ETF will undergo the same fluctuation.
I’m lost, if you buy in dollar with pound and the pound is weak at the time for $70 a share and then sell when the pound is strong for $70 a share it makes no difference? You will get back less in pounds than you paid out
Once you open the account in any currency you are not allowed to change it. That’s why people are asking for multi currency accounts.
The actual listing of the ETF makes no difference. It is just a matter of whether you (T212) convert it to euros (as the post is regarding euros) or whether the ETF itself converts it to euros. But it is converted to euros instantly so it makes no difference.
As we do not have multi-currency account, the time frame is the same. Everything is converted when you buy/sell so there can be no variation.
I still think choosing your currency buy time and then choosing your stock buy time could be a lucrative advantage if executed correctly and vice versa for selling
Not at @EquityInvestor, but at this topic in general. Automatic reply ftw.
If you want true currency diversity, you need to get ETF who’s base currency is non USD, like Hedged versions. So take random S&P500, whatever currency you take GBP/EUR/USD, same end result, as underlying currency is USD, so the actual ETF value varies based on FX , but you are still in USD, so no currency diversion. Only hedge once give exposure to different currency.
If I buy one share at 1 GBP and the exchange EU to GBP is 1.20 to euro that means I will pay 1.20 for 1share at 1GBP. Ok.
1 year later I want to sell that share but now the exchange EU to GBP is 0.80 EU to get 1GBP. That means for the same share I will receive 0.80 hence I lost 0.40 because of FX impact.
Am I right?
There is different between stocks in GBP/USD/EUR and ETFs.
Stocks do work with FX exposure as you mention.
But ETFs base currency is mostly USD unles hedged version. So even tho you buy S&P500 in GBP it is in fact in USD.
I’ve said this over and over again and it always come back as no because you don’t pay an exchange rate or the funds track’s the currency which all makes no sense.
If you buy at price a and sell at price b there’s a difference end of subject regardless of the amounts.
Timing the conversion of currency and timing the purchase of stock is the same thing.
If you sell the stock you can keep the currency already converted ready to buy the next stock in the currency avoiding fx changes
Cool, so I shouldn’t worry about currency exchange GBP to EU when I invest in ETF because both are affected by the USD
In most cases yes.
You can check your etfs on justetf.com
You are looking for fund currency and currency risk.
You can search for “hedged” versions. For exposure to EUR/GBP instead of USD.
Btw, what’s your opinion on my ETFs? Are they diversified enough?
