Although I have been investing for more than a year, there one think I keep on asking myself. And now that I switch to IB I believe its time to shed some light on this, once and for all. Questions are usually around the domicile of a fund, the country of the stock exchange, the curency and how to make choises.
The following is my thought process that exposes the questions I have, some that I have already answered, some i cannot not. But I hope this will help me or others.
I want to buy VT (Vanguard Total World ETF).
This seems to be the official page : https://investor.vanguard.com/etf/profile/VT, but its already not clear:
- Why can’t I see, on this page, the ISIN identifier ?
I am clearly missing something, so I deeper. I also find http://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0000G5T2. This has the expected ISIN number, that is US9220427424. Starts with US, so I guess at this time, this is a US domiciled fund and is traded on ARCA (NY stock exchange)
- Is the ISIN number unique per IndexFund/Stock Exchange combination ? Can there be the same Index Fund on another Exchange, since I cannot trade on ARCA ?
Then, to answer my question, I search for VWRL on Degiro. I find 3 ETFs, on the main stock exchanges : SWX (CHF), EAM (EUR), LSE (GBP). All with the same ISIN! So there can be same ETF, same ISIN (IE00B3RBWM25), but listed on different stock exchanges, and with differnet denominations! then the question is…
Does it matter Where the stock exchange is from, sice the ETF is the same ? The real issue as far as I know, regarding taxes, is the domicile of the ETF, not the country of the stock exchange or the currency.
Then, the next important question is, how do you make a choise ? I have currently EUR, CHF and USD and I can invest, with IB, pretty much anywhere. Is it ok to ignore the initial currency exchange so that I go to the “right” one ?
I hope I make sense, and also I hope other people have the same issues as I do