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This question is based on the assumption that the US dollar will in the future be experiencing high inflation, which, all else being equal, will cause regular devaluations against all other currencies.
Right now most of my worldwide investments are covered by Vanguard ETF's, which are held in US dollars. I have never been too worried about currency exchanges, because I have felt that in general, the exchanges of funds from the original currencies (euros, rubles, yen, etc) into the USD, and then ultimately from them to the CDN in the form of dividends, would basically offset each other.
However, recently I have been rethinking that .... some of the funds, like VWO and VEA only pay a single yearly commission.... that could mean that the foreign currency comes in early January, but is not paid out until December. In a time of high inflation, that could mean that instead of cancelling out, I may have lost a significant amount.
If that is the case, would it make more sense to find a fund that pays dividends more frequently, even with a higher MER than the vanguards, to avoid the currency loss?
Right now most of my worldwide investments are covered by Vanguard ETF's, which are held in US dollars. I have never been too worried about currency exchanges, because I have felt that in general, the exchanges of funds from the original currencies (euros, rubles, yen, etc) into the USD, and then ultimately from them to the CDN in the form of dividends, would basically offset each other.
However, recently I have been rethinking that .... some of the funds, like VWO and VEA only pay a single yearly commission.... that could mean that the foreign currency comes in early January, but is not paid out until December. In a time of high inflation, that could mean that instead of cancelling out, I may have lost a significant amount.
If that is the case, would it make more sense to find a fund that pays dividends more frequently, even with a higher MER than the vanguards, to avoid the currency loss?