2G·

FTSE All World or Ex-USA

Greetings,

I have a question regarding the currency risk in ETFs.

As you know, the dollar is the world's currency and is traded almost everywhere, so there is a big currency risk.

I know that you should invest for the long term, accept setbacks and other risks.

There is more chunk risk of the Americans in the World or Allworld.

The Ex USA ETF $EXUS (-0,05%) is 50% European and the currency is almost 30% in euros and 6% in dollars.

Does it make sense to buy this ETF in the current situation (no portfolio yet) + an additional S&P500 $CSPX (-0,67%) at a later date, when the dollar is doing better again?

Or the simple Allworld "with eyes closed and through"?

Many thanks for the usual qualified answers :)

5 Commenti

Staatsmann@Staatsmann

I'm not worried and will continue to invest as before.

Political stock markets generally have short legs.

Nevertheless, it is right to look at the currency distribution.

What do the currencies in your portfolio look like at the moment?

I am at 55% USD and 15% EUR.
The rest are other currencies such as CAD, HKD, JPY and others.

When do you want to estimate when the USD will improve again so that you can invest accordingly?
To me it reads a bit like deliberate market timing, which usually doesn't work.

•

Mark777@Mark777

First of all, thank you for your feedback 😉

I had already written a post a long time ago about the parents' portfolio...not much has happened so far, but now the plan is to get down to business.
They currently only have Rheinmetall as a single share in their portfolio, but now they want to add an ETF for a long-term, broad-based investment.

When the dollar is back at €1.02, you could say that it is worth buying in dollars again without any major currency loss.
You certainly won't hit point X when you start, but it's better than a €1.10 exchange rate😑.

So would the Allworld with 67% 🇺🇸 currency still be better in your opinion?

••

Staatsmann@Staatsmann

@Mark777 I wouldn't worry about the 67% USD either.
It would be different if you had 80 or 90% USD in your portfolio.
But I would feel the same way with 80% JPY or EUR. :)

I rely a lot on the managers of the ETFs and the leading indices when it comes to balancing, because they know more about the fun and also have access to other data sources in order to assess the corresponding risks or make forecasts.

•

Matti@mattilist

You shouldn't worry about currencies: when a currency weakens, share prices rise. These effects balance each other out over time. You should worry if you only have the S&P 500, as this index is very overvalued. It can easily halve. That's why investing in MSCI Ex USA (IE0006WW1TQ4) actually makes a lot of sense! I have done the same.

•

Jo@oeffi

20H

A shopping trip on the US stock market is worthwhile right now.

•