07-28-2022, 12:38 PM
ELI5 - underlying fund currency USD in the EU market
<!-- SC_OFF --><div class="md"><p>Hello everyone, since our recent push for EUR/USD parity - can someone please explain the mechanics of how the currency rate impacts the buyer/holder/seller of an ETF listed on an EU exchange with the underlying currency of USD (non-hedged and hedged scenarios). For example - this one - IE00B4L5Y983. Or any other. </p> <p>Is the fund now more "expensive" to buy due to the currency rate?<br/> If not - how is the currency rate factored in and how does it impact buyers or sellers?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/MrYellow0"> /u/MrYellow0 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/w9kbr3/eli5_underlying_fund_currency_usd_in_the_eu_market/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/w9kbr3/eli5_underlying_fund_currency_usd_in_the_eu_market/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Hello everyone, since our recent push for EUR/USD parity - can someone please explain the mechanics of how the currency rate impacts the buyer/holder/seller of an ETF listed on an EU exchange with the underlying currency of USD (non-hedged and hedged scenarios). For example - this one - IE00B4L5Y983. Or any other. </p> <p>Is the fund now more "expensive" to buy due to the currency rate?<br/> If not - how is the currency rate factored in and how does it impact buyers or sellers?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/MrYellow0"> /u/MrYellow0 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/w9kbr3/eli5_underlying_fund_currency_usd_in_the_eu_market/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/w9kbr3/eli5_underlying_fund_currency_usd_in_the_eu_market/">[comments]</a></span>