Was just checking the VWRL and VWRD quotes on Google and see that there is a significant difference in the past performance, YTD for example -10.48% for VWRL and -20.29% for VWRD.
What am I missing? The two ETFs are basically equivalent, is it really the different currency that explains this?
The USD.EUR was at 0.88 on 1.01.2022, now at parity.
Thanks! This is what I thought, with the inflation that USD had recently.
But basically this shows that choosing between different denominations for the same ETF can have serious implications for future returns, even though so many online resources put all the VWRLs for example (be it the one on AEX in EUR or SIX in CHF) in the same bucket and say there’s no difference for an investor to choose from apart from FX costs.
So going forward the VWRD (if USD inflation continues), or the VWRL in EUR (if there’s further turmoil in the Eurozone) could be a bad choice to invest in for a new investor?
Or better said, then the case for investing in the VWRL in CHF becomes stronger, despite higher exchange costs …
What is your take on this?
Nope, you can buy VWRx IN CHF, USD or EUR or whatever currency, at the end of the day, you will have the same amount of CHF (-FX and transaction costs).
Already explained a lot of time on this forum, please use the search function.
Of course, I was confused because I was thinking it wrong and based on a false assumption (that last post will stay there forever to serve me as a reminder of such flawed reasonings ).
It’s the Euro that lost value compared to the dollar since January and not vice versa.