Given an ETF or index fund that tracks a foreign index but is offered in your country's currency, how can you know how much money is the ETF/Fund management taking when exchanging currencies?

For example, let's suppose that the sterling pound is worth 1.1 USA dollars at a particular moment. If you get $110 in dividens, you should actually receive £100, but the fund managers will take part of that, right? Can I see what part will they take in the ETF/Fund brochure?

Real example: Vanguard offers an ETF you can buy in pounds sterling and that tracks the S&P 500 (VUSA).

1 Answer 1


It's extremely likely that fund managers don't take any money from currency exchange.

Currency fluctuations, though, are impossible to predict, so you don't quite know how much money you're getting back out. If your investment goes up 10% while the pound sterling loses 10% vs the dollar you're still about even. If your investment goes up 10% while the pound gains 10% against the dollar you've doubled your gains.

Still the ETF is offered in pounds because you won't have to pay for currency exchanges.

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