One of my readers asked me this question: “Kyith if you are investing for your own retirement, will I be concerned about the foreign exchange since you have invested in so many USD denominated ETFs? Would it be better to go with an SGD denominated ETF?”
This is a good question that is on the mind of many investors. Some of them were influenced by friends and the media to invest in say, the iShares Core MSCI World UCITS ETF (ticker: SWDA). SWDA is an ETF that allows you to own a basket of stocks (about 1600 of them) that mimics the MSCI World.
The ETF, listed on the London Stock Exchange, is domiciled in Ireland and is more dividend withholding tax and estate tax efficient (you can find out more about dividend and estate tax efficiency in my article here and here respectively).
These ETFs are denominated in USD or EUR and this could be a concern for some investors....