Anyone here knows why the Smartshares US 500 ETF (USF) is not following the S&P500 Index and VOO since 10 November 2020?
Anyone here knows why the Smartshares US 500 ETF (USF) is not following the S&P500 Index and VOO since 10 November 2020?
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.
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/do...sales-2018.pdf
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.