Have you made any adjustments here for franking credits and/or the foreign exchange movements as the US dollar vis-vis Australian dollar has been somewhat volatile over the years. The US also has its own tax methods which may ultimately result in any net return differences between the two countries after the various credits. It is the foreign exchange differences between Australia and the US from time to time that interest me.
Hey Robert, the performance comparison doesn't take into account franking credits. It also doesn't account for currency movements (i.e. S&P 500 return and volatility is in USD). That being said, it's worth noting that for global equities, over the long term currency movements often end up flat. Periods of AUD outperformance are 'cancelled out' by periods of USD outperformance. We cover that in a blog article here: www.betashares.com.au/insights/four-reasons-to-consider-currency-hedging-your-global-investments/. However, investors seeking returns free from the impact of exchange rates can always invest in currency hedged ETFs: www.betashares.com.au/category/currency-hedged/.
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Thanks guys!
Have you made any adjustments here for franking credits and/or the foreign exchange movements as the US dollar vis-vis Australian dollar has been somewhat volatile over the years. The US also has its own tax methods which may ultimately result in any net return differences between the two countries after the various credits. It is the foreign exchange differences between Australia and the US from time to time that interest me.
Hey Robert, the performance comparison doesn't take into account franking credits. It also doesn't account for currency movements (i.e. S&P 500 return and volatility is in USD).
That being said, it's worth noting that for global equities, over the long term currency movements often end up flat. Periods of AUD outperformance are 'cancelled out' by periods of USD outperformance. We cover that in a blog article here: www.betashares.com.au/insights/four-reasons-to-consider-currency-hedging-your-global-investments/.
However, investors seeking returns free from the impact of exchange rates can always invest in currency hedged ETFs: www.betashares.com.au/category/currency-hedged/.