Currency Risk on Eurostoxx50 ETF

MfS

Registered User
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I am due to come into my SSIA money (20K) at the end of this month and was thinking of buying 20K of the Eurostoxx50 ETF as a long term (>5years) investment.

As this is traded on the London Stock Exchange does this mean that I need to buy in sterling and therefore incur extra charges and risk as the Pound flucuates against the Euro ?

If this is the case would I be better off to buy Quinn-lifes Eurostoxx50 tracker and pay the 1% management charges ?

Option 1 ETF Option 2 Quinn
Stockbroker costs 0.5% 0%
Currency Conversion risk% 0%
Stamp Duty 0% 0%
Management Fee 0.35% 1%

On Disposal
Sale Costs 0.5% 0%
Currency Conversion risk% 0%
 
Why not buy it in Euro on Euronext or Deutsche Borse instead to eliminate this risk?
The only currency risk is the FX cost of converting your Euros into Sterling and back and any half decent broker should do this at very close to the interbank rate anyway.
Will you not incur 0.5% stamp duty by buying them in London too - seems a bit pointless buying them there to me.
 
I was under the impression that if I bought in the UK I could keep these ETF's in a crest account which is nearly as good as holding the certificates, whereas if I bought in Europe that would not be the case.


I had a look at euronext and there seems to be a product there called EasyETF Eurostoxx 50 with charges of 0.35% per annum.

Would I be able to buy these through an Irish stockbroker ?

And if so how secure would they be ? - I would not want to lose them if somebody went bust along the way
 
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