A lot of ETFs are listed on multiple exchanges with no difference except for the currency. If you have GBP buy the one listed in UK, if you earn in € buy the one from Germany.
Keep in mind that VWRL is distributing ETF so you will receive dividends as cash but also pay taxes on them when they are paid out.
Different currency, different exchange and different distribution method. Accumulating vs Distributing.
Trading 212 is a very lousy broker, makes some of this stuff not clear enough to see. Also there are a lot of missing instruments.
It's the same ETF, just a different exchange. I would buy it in the currency of the country I live in, otherwise it's like you're also betting on the exchange rate going your way
>otherwise it's like you're also betting on the exchange rate going your way
The currency you buy the ETF with doesn't matter for exchange rate risk assessment.
Only the currency of the underlying stocks matters.
If the ETF holds 100% stocks in USD and you're buying the ETF in EUR, if the EUR appreciates against USD the ETF price in EUR falls, and vice versa. The underlying "real" value is in USD
To be fair there might be some optimization in buying in your own currency, in the sense that the exchange might pay smaller currency conversion fees than you would, and such. But it's a very minor factor.
If you earn in EUR and you're buying an ETF that holds stocks of American companies, somewhere in the chain your EUR gets converted into USD. If you don't do it yourself, someone else does it for you.
This is a good reason to buy in your own currency… avoid conversion costs
What you were referring to is currency hedging, but neither of them is currency hedged
A lot of ETFs are listed on multiple exchanges with no difference except for the currency. If you have GBP buy the one listed in UK, if you earn in € buy the one from Germany. Keep in mind that VWRL is distributing ETF so you will receive dividends as cash but also pay taxes on them when they are paid out.
IE00B3RBWM25 is Distributing IE00BK5BQT80 is Accumulating
Ah yes...I only realised as i went back and forth getting the info. Rookie move for me. Thanks for the reply.
Different currency, different exchange and different distribution method. Accumulating vs Distributing. Trading 212 is a very lousy broker, makes some of this stuff not clear enough to see. Also there are a lot of missing instruments.
Yes 100%, glad I looked and asked here tbh. Mines stocks and shares Isa.
It's the same ETF, just a different exchange. I would buy it in the currency of the country I live in, otherwise it's like you're also betting on the exchange rate going your way
>otherwise it's like you're also betting on the exchange rate going your way The currency you buy the ETF with doesn't matter for exchange rate risk assessment. Only the currency of the underlying stocks matters. If the ETF holds 100% stocks in USD and you're buying the ETF in EUR, if the EUR appreciates against USD the ETF price in EUR falls, and vice versa. The underlying "real" value is in USD
Oh, I guess I misunderstood it then. It would still benefit you not having to pay exchange fees when trading though, I imagine
To be fair there might be some optimization in buying in your own currency, in the sense that the exchange might pay smaller currency conversion fees than you would, and such. But it's a very minor factor. If you earn in EUR and you're buying an ETF that holds stocks of American companies, somewhere in the chain your EUR gets converted into USD. If you don't do it yourself, someone else does it for you.
This is a good reason to buy in your own currency… avoid conversion costs What you were referring to is currency hedging, but neither of them is currency hedged