Author Topic: Multi-currency costs in an ETF portfolio  (Read 863 times)


  • 5 O'Clock Shadow
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Multi-currency costs in an ETF portfolio
« on: December 31, 2017, 03:19:34 PM »
Hey, moustachians... I'm having trouble understanding how much the multi-currency costs can weight on the portfolio returns. Let's say that I'd like to buy two very similar ETFs tracking the same index (same exposure):

- etfA is in USD with a lower MER of 0.10%
- etfB is in EUR with a higher MER of 0.25%

Taking into account that

- my paycheque and my expenses will be in EUR
- and the broker doesn't charge any currency conversion commission

I heard some people mentioning that the only cost for the portfolio (besides broker fees and MER) will be related to the bid/ask spread between the two currencies. But how much would it be?
And most of all how can I know which fund is less expensive (net of the currency spread)?
Is there any calculation I can do to figure it out?

Thank you in advance ;)


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