07-05-2022, 03:28 AM
Do unhedged dividend ETFs have a better exchange rate than exchanging the securities
<!-- SC_OFF --><div class="md"><p>Hi guys,</p> <p>Let me explain, say you buy a dividend ETF that holds US securities. The ETF is in CND meaning at some point the fund converts the dividends from US to CND. There is a rate at which they convert USD to CND.</p> <p>My question is, is the exchange rate the fund is using better than the rate you would have if you were wanting to convert the USD dividends in CND yourself generally speaking?</p> <p>Thanks.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/JusticeForSimpleRick"> /u/JusticeForSimpleRick </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/vrj1sb/do_unhedged_dividend_etfs_have_a_better_exchange/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/vrj1sb/do_unhedged_dividend_etfs_have_a_better_exchange/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Hi guys,</p> <p>Let me explain, say you buy a dividend ETF that holds US securities. The ETF is in CND meaning at some point the fund converts the dividends from US to CND. There is a rate at which they convert USD to CND.</p> <p>My question is, is the exchange rate the fund is using better than the rate you would have if you were wanting to convert the USD dividends in CND yourself generally speaking?</p> <p>Thanks.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/JusticeForSimpleRick"> /u/JusticeForSimpleRick </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/vrj1sb/do_unhedged_dividend_etfs_have_a_better_exchange/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/vrj1sb/do_unhedged_dividend_etfs_have_a_better_exchange/">[comments]</a></span>