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Because I don't want to deal with exchange rates risks as Jacquesm already pointed out.

StavrosK 7y ago
I created an Interactive Brokers account and used this investment scheme: 65% of funds in: 80% VWRL 10% VEUR 10% VFEM 35% of funds in: VECP This is pretty fire-and-forget. I also don't really know anything more about investing, so this is pretty much the extent of my help, sorry. I don't know if these ETFs are hedged against currency fluctuations, but my gains/losses don't seem to have followed the USD, so maybe?
barry-cotter 7y ago
Deviations from purchasing power parity in currencies have a half life of seven years. Unless you’re investing for the short term the effects of currency fluctuations on returns to your portfolio will be swamped by differences in growth across national economies and their stock exchanges’ growth rates. In the long run currency risk washes out in differences in economic growth. You’re better off investing in the stock market indices you think will grow more. Population growth in the US compared to the EU alone would suggest investing in the US over Europe. If you think we’ll continue to have a more or less peaceful 21st century you’re better off investing in economies you think will grow more, which would suggest investing in the Indian subcontinent and Africa. If you don’t think that’s the way to bet you should invest in places likely to have political stability above most anything else so you should invest in places with strong states unlikely to have massive political unrest that will maintain good relations with your home country. For security you’d invest in property in someplace like Switzerland through real estate investment trusts, or the US if you think the West will endure as a political reality and the US will avoid civil unrest in the coming decades.
- lrem 7y ago
  On a particular point: the number of vacant properties in Switzerland has exceeded the population of the capital. The safe property investment idea got too popular to stay effective.
mruts 7y ago
There are euro hedged S&P 500 ETFs. One of them is this: https://us.spindices.com/indices/equity/sp-500-eur-hdg https://us.spindices.com/indices/equity/sp-500-eur-hdg But, if I may ask. What is the specific reason you don't want currency risk? The dollar has maintained it's strength since the recession and if there's a currency pair where one might not need to hedge, it would be USD/EUR.

I created an Interactive Brokers account and used this investment scheme: 65% of funds in: 80% VWRL 10% VEUR 10% VFEM 35% of funds in: VECP This is pretty fire-and-forget. I also don't really know anything more about investing, so this is pretty much the extent of my help, sorry. I don't know if these ETFs are hedged against currency fluctuations, but my gains/losses don't seem to have followed the USD, so maybe?

barry-cotter 7y ago

Deviations from purchasing power parity in currencies have a half life of seven years. Unless you’re investing for the short term the effects of currency fluctuations on returns to your portfolio will be swamped by differences in growth across national economies and their stock exchanges’ growth rates. In the long run currency risk washes out in differences in economic growth. You’re better off investing in the stock market indices you think will grow more. Population growth in the US compared to the EU alone would suggest investing in the US over Europe. If you think we’ll continue to have a more or less peaceful 21st century you’re better off investing in economies you think will grow more, which would suggest investing in the Indian subcontinent and Africa. If you don’t think that’s the way to bet you should invest in places likely to have political stability above most anything else so you should invest in places with strong states unlikely to have massive political unrest that will maintain good relations with your home country. For security you’d invest in property in someplace like Switzerland through real estate investment trusts, or the US if you think the West will endure as a political reality and the US will avoid civil unrest in the coming decades.

lrem 7y ago
On a particular point: the number of vacant properties in Switzerland has exceeded the population of the capital. The safe property investment idea got too popular to stay effective.

mruts 7y ago

There are euro hedged S&P 500 ETFs. One of them is this: https://us.spindices.com/indices/equity/sp-500-eur-hdg https://us.spindices.com/indices/equity/sp-500-eur-hdg But, if I may ask. What is the specific reason you don't want currency risk? The dollar has maintained it's strength since the recession and if there's a currency pair where one might not need to hedge, it would be USD/EUR.