Australia VTS Vs IHVV

For investors outside the US. Personal investments, personal finance, investing news and theory.
Sister forums: Canada, Spain (en español)
---------------
Post Reply
Topic Author
barbs00
Posts: 25
Joined: Thu Nov 26, 2015 5:36 pm

Australia VTS Vs IHVV

Post by barbs00 » Tue Mar 24, 2020 11:18 pm

Hi,

I have some money to invest in US stocks and am debating VTS(unhedged) vs IHVV(hedged).

The AUD has weakened against the USD in recent weeks so IHVV is looking more attractive. I already have a decent amount of VTS so thought my next buy into IHVV might make sense. I am not trying to currency trade but thought having both might give me flexibility in retirement (15+yrs away), meaning I could sell VTS when USD is strong and sell IHVV when USD is weaker.

I am unsure on the fees involved with hedging? I am sure there is a cost to it above the ER but am unsure of how much?

Any ideas or advice is much appreciated.

Cheers
Last edited by barbs00 on Sat Mar 28, 2020 11:57 pm, edited 1 time in total.

andrew99999
Posts: 623
Joined: Fri Jul 13, 2018 8:14 pm

Re: Australia VTS Vs IHWL

Post by andrew99999 » Wed Mar 25, 2020 4:49 am

Worth mentioning what the tickers are for non-Aussies on here.

VTS = Total US market
IHVV = AUD-hedged S&P500

My thoughts on hedging here
viewtopic.php?f=22&t=309318

Basically I think that Australia's stable political system will result in the currency recovering (eventually) and provided you don't get frustrated and sell while it potentially gets worse before it gets better (could easily be many years), then I think the hedged version is a good option at this time.

As for buying US vs total world, the reasons put forward don't hold up in my opinion.

IFYOUCAN
Posts: 28
Joined: Mon Dec 24, 2018 10:48 pm

Re: Australia VTS Vs IHWL

Post by IFYOUCAN » Wed Mar 25, 2020 6:41 am

Can also use vgad instead of ihvv.

Topic Author
barbs00
Posts: 25
Joined: Thu Nov 26, 2015 5:36 pm

Re: Australia VTS Vs IHVV

Post by barbs00 » Sat Mar 28, 2020 11:58 pm

Thanks guys will check out the link

Post Reply