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