Post by eldivino on Oct 2, 2021 21:35:15 GMT 7
I normally save some months of salary before transferring it back home because I can more easily and cheaper buy ETFs there.
That was great the past years when the Baht was strong. Looking at the current fx rates, however, the money saved three months ago would now be worth 6% less if I transferred it back home now, which is a year of returns in the stock market (assuming conservative returns on something like MSCI World).
Is there any way to avoid that while still being invested in the market?
Would any of the following make any difference (at least temporarily to "park" the money), instead of transferring THB > EUR and investing in the EU:
1. Transferring THB > SGD to Interactive Brokers account and buy SPDR S&P500 ETF listed at the SGX because THB to SGD has less decreased than THB to EUR/USD;
2. Keeping THB in Thailand and buying SCBS&P500-SSF equity fund from SCB which is investing in the IShares Core S&P 500 ETF at the NYSE
Or would this all be the same at the end of the day because all those underlying funds are in USD anyway so there would be some currency risk?
Am I overcomplicating this?
(PS: And I am aware that the SCBS&P500-SSF has a disgustingly high management fee of up to 3% though it currently is at <1%)
That was great the past years when the Baht was strong. Looking at the current fx rates, however, the money saved three months ago would now be worth 6% less if I transferred it back home now, which is a year of returns in the stock market (assuming conservative returns on something like MSCI World).
Is there any way to avoid that while still being invested in the market?
Would any of the following make any difference (at least temporarily to "park" the money), instead of transferring THB > EUR and investing in the EU:
1. Transferring THB > SGD to Interactive Brokers account and buy SPDR S&P500 ETF listed at the SGX because THB to SGD has less decreased than THB to EUR/USD;
2. Keeping THB in Thailand and buying SCBS&P500-SSF equity fund from SCB which is investing in the IShares Core S&P 500 ETF at the NYSE
Or would this all be the same at the end of the day because all those underlying funds are in USD anyway so there would be some currency risk?
Am I overcomplicating this?
(PS: And I am aware that the SCBS&P500-SSF has a disgustingly high management fee of up to 3% though it currently is at <1%)
