ETF [Eqqq&VUSA] UK domicile price vs actual index

Investing and Markets 📈
1

Hi Team,

The main question is as per title, but before I begin i just wanted to bring to the table a few bits of information :

  1. The GBP and USD price over the short to medium term:
  • this last year the GBP has been blown out by the USD fuelled by the Ukrainian war , as we are aware the USD is a world currency reserve. Below GBP to USD price:
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2.Now if i make a small comparison between VUSA - uk domicile and VOO - USA domicile. How does the GBP strength/weakness play with the price . I am not sure i understand and wanted your opinion/input please ?

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3.For comparison purposes we have a similar situation for Eqqq and QQQ

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4.What is your opinion on this Nasdaq tracker that is using hedging this time around:
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  1. I feel i am not really grasping the situation with this rally. I mean don’t get me wrong great we have a rally. Can someone bring more light to it? I mean the price is similar to wat it was at the start of the year.
    With me reapeting myself i also bring you the S&P 500 index which is far behind its peak. Why is this in contrast to Vusa…
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Any input on the above would be greatly appreciated @TheRaven @smellylegend @BlueSonic @Kiava @bitflip @StevieG @Roger @Eden @NeilB @Coolsmp @dk1

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  1. People say the dollar is crowded. But if yer an uber bear its not…

  2. No idea but I know but I know as a UK domicile it’s good for me to be in the dollar.

  3. See 2

  4. Mixed. I’d rather just pick my names.

  5. Low volume. Wait till volume kicks in, the vix rockets and we drop another 60%

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4

So the rally will not continue?
Or do we have strong fundamentals for it to carry on?
Or maybe the market has priced in q2 earnings and its waiting for a strong q3. If it dissapoints the rally stoos if not it continues?

5

You can pay a little more for a hedged ETF if you want but I think it’s best to ignore currency fluctuations if you’re a long-term investor.

Hedging can make more sense with bond ETFs as it’s wise to negate currency risk and minimise volatility in the defensive part of your portfolio.

Monevator has some good articles on currency among many other topics, which you may find useful:

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My take is that I like gold, silver and BTC cos the fluctuations don’t bother me too much except when they print cash.

7

Can a lot of the above be put down to currency fluctuations

1 Like