Just confirm my understanding: Why has VWCE returned below market rate this year?

[carl1013]

Ok I think I know the answer and I want to confirm my suspicion. I am frustrated that VWCE has gone up 0% vs before the pandemic despite many stocks being at all time highs and the US market overall being up 5-8% vs before the pandemic.

VWCE's stock price has gone up about 4.36% in the last 12 months.

When I look at VWRA, VWCE's US dollar sister ETF, it is showing a 14.83 % return from Nov 30 2019- Dec 1 2020. (Yahoo finance doesn't seem to track VWRA well)

I was extremely upset until I saw that during the same period the EUR is up 9.89% vs the USD.

That explains the difference between why I am feeling disappointed that I am not seeing the stock market returns of the overall markets--> it's being masked by the appreciation of the EUR vs the USD.



That sound right?

 

[alexandervrc]

@carl1013 Yes, the underlying stocks gained value, but so did the euro, so numerically they stayed the same, even though you're richer.

 

[carl1013]

@alexandervrc Thank you sir.

 

[amcillwain]

@alexandervrc He's not richer, that's for sure.

 

[1faith4all]

@carl1013 Depreciation of the dollar is one of the main reasons why (USD) stock prices and eg commodity prices are up so much. It isn't strenghtening of the underlying, it is the lower value of 1 USD.