Background:
•19 years old
•Belgian (EURO)
•Intends on indexing for the next 50 years
•Dollar-cost averaging
Either I invest in VOO which has a 0.04% management fees or I invest in IUSE which has a 0.20% management fees but this one is currency hedged which means that I don't have to worry about the EUR/USD pair. I started investing in the hedged one but I made the compound calculation with theoretical numbers with stocks returning 8% on average:
2000 invested every year for 50 years at 7.96% will yield a return of 1,313,844.47 (That's for VOO)
2000 invested every year for 50 years at 7.8% will yield a return of 1,239,518.43 (That's for IUSE)
Is it worth hedging since because I'm dollar cost averaging, the impact of the currency will be less important on the long term? I was hesitant when thinking about it but now that I write down the numbers it becomes clear to me that I should go with VOO. (Plus buying 1 American ETF a month is free on my brokerage which is perfect for me.)
I'm still going to post this to gather some of your thoughts.
Submitted July 02, 2017 at 03:53PM by Azerty800 http://ift.tt/2t6ZLcl
