I am just starting with FI and have already quite a bit but I am still worried about the currency risk as most of the ETFs are in USD or EUR and basically there is simply no CHF ETF which is worth their TER (please correct me if am wrong here).
To make things worse it will soon not even be possible to buy Vanguard ETFs in USD because of the regulations. In my opinion USD is less risky than EUR but again that is my opinion.
So for me as a new FI person I have to buy my ETFs in EUR and have to cope with that currency risk.
For a starter I am considering the following two ETFs on the Euronext Amsterdam exchange:
- Vanguard FTSE All-World UCITS ETF Distributing (IE00B3RBWM25)
- Vanguard S&P 500 UCITS ETF (IE00B3XXRP09)
Note that these are two ETFs which are on the free ETFs list of DEGIRO (https://www.degiro.ch/data/pdf/ch-en/Free_ETFs.pdf) so they “only” cost me 0.1% for the currency exchange fee from CHF to EUR. No transaction fees.
But again placing a large part of my money in a foreign currency such as the EUR feels scary. Maybe I am missing an important FI concept here? Do you people from the FI community simply ignore the currency risk because for example it is anyway for the long term?
I am looking forward to hear your opinion.