buying international ETFs (i.e. non-USA)... do I have to worry about currency rates?

Discussion in 'ETFs' started by stockmarketbeginner, Jan 15, 2018.

  1. Hello,

    I'm reading asset allocation books (from a USA investor perspective). They say to buy some international ETFs.

    Do I have to worry about currency rates? I think the dollar is of intermediate strength right now. I would reason that I should buy international ETFs when the dollar is strong. That way you get more for you money.

    Is that true?

    It looks the like the major ETF providers have some nice funds that cover Europe, Asia, etc. Just not sure if now is a good, bad, neutral buying time for these.

  2. truetype


    Some ETFs hedge out fx exposure; some don't. Read the prospectus.
    stockmarketbeginner likes this.
  3. clacy


    DXJ would be an example. Japan ETF hedged for Yen exposure
    stockmarketbeginner likes this.
  4. comagnum


    You can get into an ETF like the 'IEMG' I-shares MSCI Emerging Markets which has very low expenses of 0.14% & trades about 15 million shares a day. If your with Fidelity this is commission free if you hold it more than 30 days - if you bail early you pay their normal commission of $10 round-trip.
  5. Thank you. What does that mean exactly? Do they do some sort of financial voodoo to keep the share price currency neutral?
  6. truetype