PDA

View Full Version : Smartshares US 500 ETF (USF) not following S&P500 Index any more


samansoft
14-01-2021, 02:31 PM
Anyone here knows why the Smartshares US 500 ETF (USF) is not following the S&P500 Index and VOO since 10 November 2020?
Jaa
17-01-2021, 02:00 AM
The NZD has skyrocketed over that period, more than offsetting gains in the S&P 500.

USF does not hedge its currency exposure so you are investing in the USD as well as the companies. Long term it won't have too much of an effect.
iceman
17-01-2021, 12:13 PM
The NZD has skyrocketed over that period, more than offsetting gains in the S&P 500.

USF does not hedge its currency exposure so you are investing in the USD as well as the companies. Long term it won't have too much of an effect.

I look at my monthly batch of a few dollars into USF as a hedge into a basket of currencies. Majority of the companies in S&P 500 derive their income from around the World in multiple currencies. I can't think of a better diversification than this ETF., whether diversifying in industries, geography or currencies.
Jaa
18-01-2021, 04:49 PM
I look at my monthly batch of a few dollars into USF as a hedge into a basket of currencies. Majority of the companies in S&P 500 derive their income from around the World in multiple currencies. I can't think of a better diversification than this ETF., whether diversifying in industries, geography or currencies.

Good point Iceman, you encouraged me to Google this. In 2018, foreign sales were 42.9% of total sales revenue for S&P 500 companies, more than I would have thought.

https://www.spglobal.com/spdji/en/documents/research/sp-500-global-sales-2018.pdf
ratkin
18-01-2021, 09:49 PM
I stick a few K into the total world fund TWF and a few others every month, for similar reasons, diversity away from NZ. Although our market have been stellar, it will not be that way forever.
iceman
18-01-2021, 11:42 PM
I stick a few K into the total world fund TWF and a few others every month, for similar reasons, diversity away from NZ. Although our market have been stellar, it will not be that way forever.

With our dollar strong and expected to stay strong for a while yet I think now is a good time to moderately diversify into a wide range of overseas assets, ready for the post-COVID recovery.
ratkin
19-01-2021, 11:58 AM
With our dollar strong and expected to stay strong for a while yet I think now is a good time to moderately diversify into a wide range of overseas assets, ready for the post-COVID recovery.

Yep, thinking of adding a few lump sums in at some stage. My biggest smartshare holding currently is EUF. Prices were held down by brexit and covid, valuations far less strained than US market.
iceman
19-01-2021, 12:09 PM
Yep, thinking of adding a few lump sums in at some stage. My biggest smartshare holding currently is EUF. Prices were held down by brexit and covid, valuations far less strained than US market.

I've been putting most of my monthly into EUF as well for the last few months. Some very strong manufacturing and consumer businesses in there that will do well post COVID