A very good point, I will give those "Long answers" materials a read and rethink this part. However a quick question tho, would I increase my AUD expose if I simply change the "Betashares Global Shares --- BGBL --- 45%" allocation to "Betashares Global Shares Currency Hedged ETF --- HGBL", which I believe is the same as BGBL but AUD hedged.Purchasing global / emerging market ETFs in AUD doesn't expose you to AUD, It is a common misconception that the currency in which an ETF is trading has any effect on its eventual returns (other than currency exchange fees which are so cheap on IBKR that they can safely be ignored). What matters is the currencies to which the underlying holdings of the ETF are exposed. If you wanted to increase your AUD exposure, you would purchase ETFs tracking Australian companies which have a significant part of their revenues in Australia. More on this below (when reading this, mind that in Europe, a given ETF can be traded in different currencies on different exchanges):
I bought the AUD ages ago when the AUD/USD exchange rate was around 0.8, currently its sitting at 0.64, I'd rather not commit the loss. Beside since there is a possbility that I might return to Australia some day, I don't mind having some AUD exposure, instead of 100% USD/HKD exposure.
I will have both the LSE and ASX holdings on IBKR, so I guess managing both shouldn't be too bad.
Statistics: Posted by ThatExpatGuy — Wed Apr 17, 2024 4:18 am — Replies 6 — Views 525