I have this doubt about investing and would be grateful if anyone can shed some light.
Say i buy an ETF(or mutual fund) denominated in USD, i buy this ETF using sing dollars. Lets also assume this ETF is an international ETF meaning that the ETF buys securities of foreign companies denominated in foreign currencies.
Now, what will happen if the USD depreciates against the foreign currencies? My guess is that the value of the fund (denominated in USD) will increase to reflect the depreciation of the USD/appreciation of the foreign currencies. Am i right?
When i try to sell the ETF now, the amount of Sing dollars that i will get depends on the exchange rate between Sing dollars and USD, right?
In other words the amount of money that i receive will finally depend on the exchange rate between Sing dollars and the foreign currencies that the ETf invests in, right?
Not sure whether i am explaining myself clearly here, anyway, any info would be greatly appreciated.
Thanks
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What happened to all the "stock market gurus"?????