LoginSignup
Justin
@zjusl
1Settimana·

Maybe a stupid question?

if you invest all your assets in e.g. $VWRL (+0,22%) or $HMWO (+0,29%) and the euro currency were to die.

Would that not matter because of the shares you hold and could you theoretically sell them again for another currency or is that complete madness because you bought in euros?

If that is not possible, what would happen and how can you counteract something like that apart from crypto and gold?


If the question is extremely stupid and unambiguous, I am already sorry and thank you for any answer.

Have a good year 2025 🙏🏻

7
14 Commenti
immagine del profilo
DieEnte7@DieEnte7
1Settimana
In this case, your "property" is the fund units and the value of this property is stated in €. If the euro were to disappear, your property would still belong to you, but the value would be measured differently.

Basically like a property worth €500,000. If the euro ceases to exist, you won't lose your property, but it may of course lose value regardless of this if something as drastic as the end of the euro happens
•
5
•
immagine del profilo
Tenbagger2024@Tenbagger2024
1Settimana
The question wasn't so stupid after all. With shares, you have a stake in a company. The ETF provider also has a stake in the company. And I don't think it ultimately matters in which currency you bought the investment.
•
4
•
immagine del profilo
Homer@Simpson
1Settimana
There are no stupid questions, only stupid answers 😊

Since I haven't had the experience yet, probably like when the Dmark € change came, you will be able to sell the shares with new currency 😊👍
•
3
•
immagine del profilo
Kai@Dividenden-Sammler
1Settimana
@Simpson is converted into the new currency accordingly. At the time of the DM to € exchange, shares that cost 100DM were worth 51.13€ (exchange rate 1:1.95583)
•
2
•
Justin@zjusl
1Settimana
@Simpson Thank you!
So (too much) cash would probably always be the wrong choice with a long investment horizon. 😅🙏🏻
•
1
•
Justin@zjusl
1Settimana
@Dividenden-Sammler But could the shares have been exchanged for USD, for example?
••
immagine del profilo
Homer@Simpson
1Settimana
@zjusl In fact, the currency itself is the biggest danger that loses value 😂 It is not for nothing that you are on the better side with shares in real estate precious metals 😊
•
2
•
immagine del profilo
Homer@Simpson
1Settimana
@zjusl You have to open a broker in the USA and buy there 😊
You're worrying too much 😂
•
1
•
immagine del profilo
Kai@Dividenden-Sammler
1Settimana
@zjusl it is exchanged into the new currency that would follow the euro. You can't choose.

What you can of course do is open a custody account in the USA, Switzerland, etc., then transfer your securities there and sell them there. Then there is USD or CHF on the clearing account, which you should also keep there.
•
1
•
immagine del profilo
Smudo@Smudeo
1Settimana
@Simpson true, although the shares were traded in euros even before the euro was introduced
•
1
•
immagine del profilo
Dividendenopi👴@Dividendenopi
1Settimana
@Simpson did not have to. I have a free foreign currency account with my broker and convert USD into it to buy USD bonds, for example. I could also buy corresponding securities in USD on US stock exchanges and did so some time ago. However, the fees are hefty. The depository is not clearstream either. I had done this in part with $MO and $VZ and still hold them and also once had an ADR from Petrobas
•
3
•
immagine del profilo
Enrique@Dividenden_Monteur
1Settimana
They are simply converted to the new currency.
It was the same for us 23 years ago when the euro was introduced and the mark "died".
•
2
•
Justin@zjusl
1Settimana
@Der_Dividenden_Monteur
Great, thank you!
•
1
•
Eggplant@Eggplant
1Settimana
The ETF is denominated in USD, which means that if the USD falls, your ETF will lose the same amount of value.

Depending on which broker you are with, you may also receive the dividends directly in USD. I have already seen all 3 variants. Payout in USD, payout in local currency, payout in USD with corresponding separate conversion.

If you want it in local currency, then you have to buy it hedged
••
Partecipa alla conversazione
IscrivitiAccesso