Q: Hello 5i,
Is it better to hold DLR or DLR.U if the US currency is strengthening against the Canadian dollar?
Thank you for help.
Is it better to hold DLR or DLR.U if the US currency is strengthening against the Canadian dollar?
Thank you for help.
5i Research Answer:
It won't make a huge difference either way as DLR is not hedged, and thus both funds will move with the US dollar. Both pay US dollar distributions, so we would prefer to hold the ETFs in a US account to avoid conversion fees, so we would side with DLR.U here.