Foreign ETF = Foreign currency?

[nostradamus]

Question: If I buy an ETF which is in a foreign market, does this help to protect me from a declining US dollar? In other words, would it work something like this?

1. I buy a China ETF for X dollars
2. The dollar goes down by Y% against the yuan
3. Performance was flat: the price of the ETF is now Y% more in dollars?

I’m assuming that when I buy a foreign ETF, somewhere along the way my dollar is converted to the foreign currency at the prevailing rate of the day. I own the stock in that foreign country so if I sell it later, it sells in the foreign currency then is converted back to US dollars at the sale date’s prevailing rate?

[Raybyrnes]

Algebra is easier when you plug in some numbers. Use some simple numbers and you can work this out yourself.

[Raybyrnes]

Algebra is easier when you plug in some numbers. Use some simple numbers and you can work this out yourself.

[Raybyrnes]

Algebra is easier when you plug in some numbers. Use some simple numbers and you can work this out yourself.

[Eugene]

Yes, of course – assuming that underlying stocks don’t go down against the yuan in the mean time. Much of Chinese economy is export oriented and depreciating dollar hurts Chinese exporters. Ideally you’d want to find an ETF with minimal exposure to the U.S. market (either direct or indirect).

[Eugene]

Yes, of course – assuming that underlying stocks don’t go down against the yuan in the mean time. Much of Chinese economy is export oriented and depreciating dollar hurts Chinese exporters. Ideally you’d want to find an ETF with minimal exposure to the U.S. market (either direct or indirect).

[Eugene]

Yes, of course – assuming that underlying stocks don’t go down against the yuan in the mean time. Much of Chinese economy is export oriented and depreciating dollar hurts Chinese exporters. Ideally you’d want to find an ETF with minimal exposure to the U.S. market (either direct or indirect).

[nostradamus]

Raybyrnes come on now. You gotta read my original post, it’s not a question of math it’s a question of how the markets work. I wish it were all about math ‘cuz then I’d be good at this investing thing (math scholarships paid for my UCSD degrees). I will admit to being dumb on stock markets.

Thank esmith, I’m hoping that’s they way it works! Yesterday China’s market crashed a little bit so I snatched up some bargain EWH, PGJ, and FXI ETFs. Looks like they’re bouncing back already (for once I’m LONG on these stocks):

[img_assist|nid=5292|title=|desc=|link=node|align=left|width=466|height=119]

[nostradamus]

Raybyrnes come on now. You gotta read my original post, it’s not a question of math it’s a question of how the markets work. I wish it were all about math ‘cuz then I’d be good at this investing thing (math scholarships paid for my UCSD degrees). I will admit to being dumb on stock markets.

Thank esmith, I’m hoping that’s they way it works! Yesterday China’s market crashed a little bit so I snatched up some bargain EWH, PGJ, and FXI ETFs. Looks like they’re bouncing back already (for once I’m LONG on these stocks):

[img_assist|nid=5292|title=|desc=|link=node|align=left|width=466|height=119]

[nostradamus]

Raybyrnes come on now. You gotta read my original post, it’s not a question of math it’s a question of how the markets work. I wish it were all about math ‘cuz then I’d be good at this investing thing (math scholarships paid for my UCSD degrees). I will admit to being dumb on stock markets.

Thank esmith, I’m hoping that’s they way it works! Yesterday China’s market crashed a little bit so I snatched up some bargain EWH, PGJ, and FXI ETFs. Looks like they’re bouncing back already (for once I’m LONG on these stocks):

[img_assist|nid=5292|title=|desc=|link=node|align=left|width=466|height=119]

[Raybyrnes]

Your playing with 60K. Many mutual fund companies start to offer break points at 50K. Wonder how you would do if you picked a good solid index mutual funds and just dollar cost averaged into it for the next 3 to 5 years. Wonder how this would compare to your timing. It may be fairly boring but over the long haul it has proven to beat 90% of the market timers. Your a math guy, probability says your system is going to work against you.

[Raybyrnes]

Your playing with 60K. Many mutual fund companies start to offer break points at 50K. Wonder how you would do if you picked a good solid index mutual funds and just dollar cost averaged into it for the next 3 to 5 years. Wonder how this would compare to your timing. It may be fairly boring but over the long haul it has proven to beat 90% of the market timers. Your a math guy, probability says your system is going to work against you.

[Raybyrnes]

Your playing with 60K. Many mutual fund companies start to offer break points at 50K. Wonder how you would do if you picked a good solid index mutual funds and just dollar cost averaged into it for the next 3 to 5 years. Wonder how this would compare to your timing. It may be fairly boring but over the long haul it has proven to beat 90% of the market timers. Your a math guy, probability says your system is going to work against you.

[nostradamus]

Thanks! What is a break point? Does that mean if I invest $50k+ they will not charge me any loads or fees?

I never liked mutual funds because of their turnover rate and my conspiracy theories that fund managers can be corrupted.

[nostradamus]

Thanks! What is a break point? Does that mean if I invest $50k+ they will not charge me any loads or fees?

I never liked mutual funds because of their turnover rate and my conspiracy theories that fund managers can be corrupted.

[Author]

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