I was looking at the First Trust Nasdaq Clean Edge Green Energy UCITS ETF and it says that it is "available to trade on London Stock Exchange in US dollars (QCLU LN) and pound sterling (QCLN LN). "
Why would they list the same fund in both GBP and USD on the London Stock Exchange?
And why would you want to trade on the LSE in USD? To try and take advantage of the exchange rate by having your investment in another currency?
Also, QCLN is up 1.26% today and QCLU is up 1.69% today and they generally differ in amounts of increase/decrease over time, is this again due to the exchange rate fluctuating or some other reason?
Thank you.
The reason for offering both is to serve investors who have either GBP or USD and would find it expensive to convert between currencies. Some people who use the LSE have USD in a USD account and find it best to buy things priced in USD.
We used to say that for a client of Trading 212 it makes no difference which you buy because fx has 0 fee. Soon there will be a 0.15% fee, so you will want to buy the one that matches your account currency. The performance of the two will be nearly the same provided you look at performance as measured in the same currency.
You will find that the difference is explained by the fact that GBP has slightly appreciated against USD today,
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I forgot some users might have their account in USD. Thanks a lot for the explanation.