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    VUSA - Vanguard UCITS ETF S&P 500 in Euros, loss more than index

    @trixiefire You buy fund shares in EUR, but the funds usually convert into USD before investing it in shares. This exposes you to risk of stocks and also currency risks. If shares yield 0% returns and the exchange rate drops, you lose money. To protect yourself against curreny risk, you can buy...
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    VUSA - Vanguard UCITS ETF S&P 500 in Euros, loss more than index

    @trixiefire With a simple google search you can find that the fund currency of VUSA is USD. Meaning they're holding shares in USD. And I now you're not acually holding USD, but are holding shares denominated in USD. But that is besides the point. I don't understand how you're unable to grasp...
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    VUSA - Vanguard UCITS ETF S&P 500 in Euros, loss more than index

    @trixiefire You're correct about the arbitrage, but this isn't the case here. You buy shares of a fund with EUR, the fund buys shares with USD, meaning you now acually hold USD. So yes, if the price in USD stays the same and if the exchange rate changes, so will the price in EUR. But that is the...
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    VUSA - Vanguard UCITS ETF S&P 500 in Euros, loss more than index

    @bhibatsu By invested in USD i meant that the fund currency is USD. Meaning it invests in shares with USD not EUR. When you buy shares of the fund in EUR it converts into USD and buys stock.
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    VUSA - Vanguard UCITS ETF S&P 500 in Euros, loss more than index

    @bhibatsu You can measure them in whatever currency you want but the return will differ beacuse of the exchange rate, but at the end of the day you're going to need it in your home currency, beacuse you spend in it, obviously. So that is why you need to measure the return in home currency.
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    VUSA - Vanguard UCITS ETF S&P 500 in Euros, loss more than index

    @bhibatsu I think we are talking about the same thing. The point is if you buy funds that invest in indices abroad, you're exposed to currency flucuations beacuse you aren't investing in your home currency. Excatly like the pesos case you just gave.
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    VUSA - Vanguard UCITS ETF S&P 500 in Euros, loss more than index

    @bhibatsu By invested in USD i meant that the fund currency is USD. Meaning it invests in shares with USD not EUR. When you buy shares of the fund in EUR it converts into USD and buys stock.
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    VUSA - Vanguard UCITS ETF S&P 500 in Euros, loss more than index

    @niaa If you bought it in EUR you're exposed to currency fluctuations, beacuse the fund is invested in USD. Check how EURUSD is moving and you will understand your returns. EDIT: Explained in the video
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