Comments on: VEA vs XIN: Foreign Exchange Fees vs. Higher MER http://www.investingintelligently.com/2008/10/21/vea-vs-xin-foreign-exchange-fees-vs-higher-mer/ Not just another (Canadian) financial blog Sat, 16 Oct 2010 15:22:19 -0700 http://wordpress.org/?v= hourly 1 By: Paul http://www.investingintelligently.com/2008/10/21/vea-vs-xin-foreign-exchange-fees-vs-higher-mer/comment-page-1/#comment-8557 Paul Tue, 26 Jan 2010 18:10:40 +0000 http://www.investingintelligently.com/?p=457#comment-8557 My comments are assuming you have a CAD based account (in my case my RRSP). So you get hit with the exchange rate both ways (div to you, then stock purchase with dividends) My comments are assuming you have a CAD based account (in my case my RRSP). So you get hit with the exchange rate both ways (div to you, then stock purchase with dividends)

]]> By: Paul http://www.investingintelligently.com/2008/10/21/vea-vs-xin-foreign-exchange-fees-vs-higher-mer/comment-page-1/#comment-8556 Paul Tue, 26 Jan 2010 14:57:13 +0000 http://www.investingintelligently.com/?p=457#comment-8556 One thing you did not address is the exchange rate costs associated with Dividends. With each dividend getting hit with a loss of 1%, it will make it less desirable to own a US based ETF vs a CAD based ETF. Additionally, some Canadian stock brokers don't do DRIPS for VEA, but they do allow it for XIN. Things to consider before swapping XIN for VEA. I'm still on the fence whether it makes sense for me. One thing you did not address is the exchange rate costs associated with Dividends. With each dividend getting hit with a loss of 1%, it will make it less desirable to own a US based ETF vs a CAD based ETF. Additionally, some Canadian stock brokers don’t do DRIPS for VEA, but they do allow it for XIN.

Things to consider before swapping XIN for VEA. I’m still on the fence whether it makes sense for me.

]]> By: Dave http://www.investingintelligently.com/2008/10/21/vea-vs-xin-foreign-exchange-fees-vs-higher-mer/comment-page-1/#comment-8531 Dave Fri, 01 Jan 2010 03:28:36 +0000 http://www.investingintelligently.com/?p=457#comment-8531 If you read the post above, the key is to not trade them. Just buy once, hold it, and sell when you retire. This way you minimize the amount of times you pay foreign exchange costs (twice) and you also increase the advantage of the lower MER once you have held it for many years (10 years in the example above). If you read the post above, the key is to not trade them. Just buy once, hold it, and sell when you retire. This way you minimize the amount of times you pay foreign exchange costs (twice) and you also increase the advantage of the lower MER once you have held it for many years (10 years in the example above).

]]> By: brent http://www.investingintelligently.com/2008/10/21/vea-vs-xin-foreign-exchange-fees-vs-higher-mer/comment-page-1/#comment-8348 brent Mon, 10 Aug 2009 06:22:46 +0000 http://www.investingintelligently.com/?p=457#comment-8348 thanks for this. The foreign currency exchange fees complicate the decision to stay with ETFs denominated in CAD$ versus those purchased in other currencies. Is there anyway to reduce these exchange fees? thanks for this. The foreign currency exchange fees complicate the decision to stay with ETFs denominated in CAD$ versus those purchased in other currencies. Is there anyway to reduce these exchange fees?

]]> By: The Well-Heeled | Creating Wealth Through Knowledge http://www.investingintelligently.com/2008/10/21/vea-vs-xin-foreign-exchange-fees-vs-higher-mer/comment-page-1/#comment-8289 The Well-Heeled | Creating Wealth Through Knowledge Sat, 17 Jan 2009 15:39:15 +0000 http://www.investingintelligently.com/?p=457#comment-8289 [...] Investing Intelligently: VEA vs XIN: F/X Fees vs. Higher MER [...] [...] Investing Intelligently: VEA vs XIN: F/X Fees vs. Higher MER [...]

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