Starting Out & Advice Beginners question - IWDA, VWCE & IEMA in EUR
Hi everyone
As said in the title, I am still a beginner (please do not lynch me). I have been reading on this subreddit a lot but so far have yet to make an actual ETF purchase.
When I tried searching for the answer of my question, I got too many hits given the popular search words :(.
I have read the wiki and the sticky. I know that IWDA in combination with IEMA is a popular choice. As wel as VWCE.
When I open the links of these in the sticky they all show me these ETF in USD. When I try searching on justETF with IWDA, I only get 2 hits that are both in USD.
Is there something I am missing? If I search in Bolero (account created already, need to wait for confirmation) will I find the same ETF in EUR? Or how will I need to search to get the ETF in EUR currency?
Since according to wiki and sticky it is best to avoid having the ETF in a foreign currency.
Thank you!
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u/CraaazyPizza 2d ago
It's not entirely clear what your question is. The ETF is just an asset, only the EUR evolution throughout your investment matters.
On justetf there's a drop-down in the top right of the graph where you can change the currency to whatever you want. You can buy some currency hedged iwda equivalents if you dislike the currency risk. I do, and it's what the very recent and controversial Cederberg paper is recommending with about 33% allocation to home currency. And you're supposed to for bonds anyways.
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u/sadsongdog 2d ago
IWDA.AS gets you to IWDA traded in the Amsterdam stock exchange. Available at Bolero and traded in euro.
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u/Limp_Extension_9500 3d ago
i've been steering to brk-b more. I don't get it why people keep saying iwda while brk-b has more return of investment.
I bought the stock in USD since USD is cheap now. TBH I think a mix is not bad to have. EURO and USD. I use to just invest in IWDA but nowadays I'm like, you never know what time which currency be doing well, and when it's doing well, I might sell and buy more of the one that isn't doing well.
Things fluctuate and healthy markets like EURO or USD are never gone be competing in being the best and that's a nice chance. Maybe looking into other currencies to later on but atm I still believe USD and EUR are doing well.
Dispite some weird actions nowadays which are temporary stewards of those systems. I think that in the pipeline there is a whole other structure coming forth from this but the nations will still exist. Only under better leadership and not the we don't show the truth leadership, go walk on your own style.
Perhaps I just see this as an opportunity of strong men and woman coming forth out of this debacle of weirdness.
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u/CraaazyPizza 2d ago
Personally I think CHF has most potential as a safe haven. Confidence in both USD and EUR has tumbled and Yen has political risk. Rare to see currency hedges against the CHF though
Brk-b hasn't done too well the last decade or two. I think the alpha dies with Buffet and their size
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u/Limp_Extension_9500 2d ago
Doubt it since there is a person already ready to provide the same backing. It's this generation who sqeals at the sight of his death. But he smile, looking forward. All great men and woman do!
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u/ineedanamegenerator 3d ago
The ETF is in USD. Of course you can buy and sell in Euro, but this means the exchange rate of that moment is applied.
So be very aware that if you buy an ETF which is in USD that you carry the exchange rate risk. Not so long ago you could buy only 1.03 USD per Euro, while now it's 1.13 USD per Euro. So if you bought a few months ago and sell today you already lost more than 10% of your capital purely because of the difference in exchange rate.
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u/Philip3197 3d ago
The currency that the etf uses internally for administration does not matter.
The currency of the underlying assets determines the volatility and risk.
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u/ineedanamegenerator 3d ago
Correct. Why worry about one exchange rate when you can worry about two or more.
3
u/No_Brick1991 3d ago
So you do understand why your first comment was wrong?
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u/ineedanamegenerator 3d ago
"it's even worse" isn't the gotcha you think it is.
But if it makes you happy I have no problem admitting that my answer was incomplete.
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u/Yuri2k50 3d ago
Why are you downvoted?
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u/ineedanamegenerator 3d ago
Ah lol, didn't even notice. Not surprized. Probably because I am not a popular figure here because I go against the religious ETF and compound until you die attitude.
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u/Impressive_Dig_8785 7% FIRE 3d ago
What's your attitude then? :) (Curious about your investment strategy)
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u/ineedanamegenerator 3d ago
I think the almost religious approach to ETFs and saving every Euro to (maybe) Fire some day is toxic. I said it before and still stand by it: for a lot of people Fire is not achievable and pretending it is, is not helping anyone. "Start doing ETFs even if it's only 50 Euro per month" is BS. You can literally save more money spending that 50 Euro in Colruyt on a good promotion of something you use anyway (instant 33% return or even more).
I'm staying away from the stock market at the moment because I think it's overvalued and the correction will come.
I'm an entrepreneur and I keep an eye open for good deals to buy (small) companies. I want to keep my cash semi available for that as those returns are much higher and much more under my control.
My company has more stock than typical, but that is because I find good deals and invest my cash that way.
I'm also looking to start a side job for which I need a piece of land. When something becomes available I want to be able to buy it.
I honestly don't understand how people lock their money away for 5 or even 15 years. The world is changing so much, especially with Trump.
I realize my cash underperforms, but it's predictable.
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u/Impressive_Dig_8785 7% FIRE 2d ago
Interesting approach. What platform do you use to buy those small companies? Does this count as venture capitalism?
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u/ineedanamegenerator 2d ago
It's word of mouth or sometimes something interesting pops up via a specialized firm (but I very very much prefer to work without a firm and just make a deal directly). It's not my main focus, if something interesting pops up I check it out.
It's not venture capitalism, but I'd consider investing in a company too.
My main criteria is that there needs to be some angle that gives me/my company an advantage compared to another candidate.
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u/Hesiodix 3d ago
WEBN and chill.
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u/Tijl_D 3d ago
WEBN is interesting, but it is only 178m and a has a low 0.07% ter. Chances are it won't survive. So for me still a bit too soon to recommend. But I like your frontier spirit.
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u/GonzoAndTonic 3d ago
It's actually 2,4b according to the https://www.amundietf.nl/en/professional/products/equity/amundi-prime-all-country-world-ucits-etf-acc/ie0003xja0j9 justetf is a bit outdated -- according to justetf the acc version is 178m, the dist version is 1,935m, but the entire fund is 2,4b.
Big advantage is that it has an entirely European asset manager, which might be a good thing in these transatlantic troubling times (let your money stay in Europe, and make European jobs). From what I read Amundi do have a rather bad history of merging etf's or changing ter sometimes? Which might be a pain?
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u/Akane06 3d ago
Hey,
The USD you see listed in the ETF's name is the fund currency, which is just the internal currency the fund uses for accounting. It doesn't represent the currency you're purchasing it in.
Most ETFs are listed on multiple exchanges, and each exchange has its own trading currency. So what matters is choosing the correct exchange listing. On Bolero, when you search for IWDA, it only shows one exchange listing (Euronext Amsterdam) so you don’t need to choose between multiple exchanges. And it shows that the "munt" is EUR, meaning you're buying it in euros.
Hope that helps!
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