Hello, I have my t212 account in eur, and I am buying ETF VUAA on the LSE (USD denominated) for my wide index investing.
I am considering switching to VUAA on Borsa (eur denominated) to avoid the 0.15% fx fee. Is there any downside to switching to the ETF on Borsa?
Does the country’s financial resilience have any effect on the instruments traded on its markets; in other words is it safer to buy form LSE than from Borsa?
I am not an experienced trader so looking for some expertise/advice from others who might know.
1 Like
Welcome to our community, @msm .
The ETFs and stocks are listed and traded on stock exchanges, but could be domiciled on other countries and could have business or assets in any country in the world.
An ETF for example, is created and domiciled in country A in Europe (EU), then it could be listed for trading in any country/countries of Europe (EU) the ETF issuer wishes. The stock exchange has nothing to do the ETF assets, it is just a place or an another place to trade the ETF.
So answering you, go for any European (EUR) stock exchange you want, to save you the FX fees. And LSE isn’t safer or worst than any other major stock exchange.
The top EUR ETFs centers are in the following descending order: Xetra (Germany), Borsa Italiana (Italy), Euronext Amesterdam (Netherlands), Euronext Paris (France) and SIX (Switzerland).
The only thing to observe when choosing a listing on a stock exchange, besides the currency, is the ETF/stock liquidity (transaction volume), high volume = easy to buy/sell and better prices, low/no volume = hard/impossible to buy/sell and worst prices.
Use Morningstar website (choose the Morningstar website specific for your country, or if there isn’t one, choose an EUR-country Morningstar website, e.g. Morningstar Ireland, for seeing all the performance converted to EUR).
Complementary use Investing.com, as it also has some interesting tools.
2 Likes
www.justetf.com isn’t half bad either.
2 Likes
Yep, it’s a good tool. (In this case, you don’t have the trading volume of each stock exchange, were the ETF is listed.)