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Stupid question that I couldn't seem to find the answer to..

Since an etf like VGRO holds underlying unhedged USD index funds.. are you paying forex fees every time you make a purchase? Is this part of the mer?

Thanks!
 

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Vanguard will need to convert CAD to USD (and vice versa), as and when required, to purchase/sell the underlying stocks that exist in the creation/destruction of new ETF units (as and when required). ETF units are not continually created and destroyed though. The VGRO units you buy or sell may just come from buyers and sellers on the open market, or the float Vanguard manages from day to day.

Whatever the case, Vanguard would be converting currency at/close to spot rates given the size of their operations and most likely having their own currency desk.

Nothing for you to be concerned about specifically.

Added: VGRO has over 52 million units. Even if 1 million units were traded in a given day, it does not mean that the total number of 52 million units changes every day. Could just mean 1 million existing units traded hands that given day.
 
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