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Royal Canadian Mint - Canadian Gold Reserves Exchange-Traded Receipts (MNT)
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Royal Canadian Mint - Canadian Gold Reserves Exchange-Traded Receipts (MNT.U)
Q: Can you explain how buying this ETR in US dollars (MNT.U) works when it is traded on a Canadian stock exchange in comparison to MNT? Am I actually getting US dollars when I sell it or are these converted to C$ with a corresponding hit because of exchange rate? Is it better to buy MNT or MNT.U? Thank you.
5i Research Answer:
MNT.U trades in Canada, but all transactions are settled in US dollars. One buys in US$ and sells in US$, as long as they use the MNT.U symbol. The two funds MNT and MNT.U own the exact same thing. The only difference is currency choice. This is largely a personal decision, and likely best on what cash is available. Generally, we would prefer gold investments to be priced in US dollars. But at the same time any currency conversion will have a fee (or one can use Norbert's Gambit).