Does buying MCHI mean I'm exposing myself to currency fluctuations of 2 currencies? (ie. USD and RMB). If yes, would it be better to buy an SGD denominated fund?
Am I exposing myself to currency fluctuations of 2 currencies? (ie. USD and RMB).
No, you are only exposed to RMB. It doesn’t matter what currency the ETF is in. The ETF manager will invest in the underlying companies which is in RMB in this case, therefore USD will be converted to RMB almost instantly. Although it looks like you are exposed to USD risk, you are actually not.
No, you are only exposed to RMB. It doesn’t matter what currency the ETF is in. The ETF manager will invest in the underlying companies which is in RMB in this case, therefore USD will be converted to RMB almost instantly.
Although it looks like you are exposed to USD risk, you are actually not.