ETF - GBP vs USD

ChilliBob

Hey everyone,
I'm keen to get exposure to an Energy ETF:
https://www.markets.iweb-sharedealing.co.uk/etf-centre/details/IUES/IE00B42NKQ00/0P000171ZQ  (USD Version) or
https://www.markets.iweb-sharedealing.co.uk/etf-centre/details/IESU/IE00B42NKQ00/0P000171ZQ (GBP Version).

With the fees being the same, and the performance of the USD version being superior when charted, it seems the obvious choice. However, I can't help but think I'm missing something - I've never purchased something in USD instead of GBP on iWeb.. So, is the performance better, and hence USD is the best choice, or, once I factor in some kind of bits I'm missing, they'll equate to the same, so to save me hassle I may as well use the GBP one?!

Cheers, and sorry for the n00b question - just never purchased anything except for GBP investments! 

coyrls

How are you seeing a difference in performance?  There shouldn't be one and I don't see one.

ChilliBob

Just charting both on FT.com - with HSBC FTSE All World C as the baseline (in green). That's 6 months, the same can be seen at different time points, with different levels of divergence/convergence. 

coyrls

Not sure why you're seeing that, here is 6 months plotted on Trustnet, the performance is identical for any period:

ChilliBob

Hmm, that's quite bizarre, I use ft.com very frequently, I hope it's not wrong!

You can actually see different changes for today on iWeb, but I suppose that could be due to currency perhaps

ChilliBob

Oh and thanks for taking the time to look mate

eskbanker

coyrls said:

Not sure why you're seeing that, here is 6 months plotted on Trustnet, the performance is identical for any period:

Doesn't the reference at the bottom to "Performance values rebased to Pound Sterling" signify that they'll be using a standardised one-off conversion rate (such as today's) rather than retrospectively applying contemporaneous exchange rates over the period (which is perhaps what FT.com is doing)?

george4064

Most definitely down to exchange rate fluctuations.

From your perspective, as a GBP investor, from a costs perspective you'd be better off investing in the GBP share class.

coyrls

eskbanker said:

coyrls said:

Not sure why you're seeing that, here is 6 months plotted on Trustnet, the performance is identical for any period:

Doesn't the reference at the bottom to "Performance values rebased to Pound Sterling" signify that they'll be using a standardised one-off conversion rate (such as today's) rather than retrospectively applying contemporaneous exchange rates over the period (which is perhaps what FT.com is doing)?

Isn't it likely to be the opposite?  If you use a one-off conversion rate, you would expect diversions between a US $ priced ETF vs a UK £ priced ETF but if you use the contemporaneous rate, you would expect no diversion, at least in terms of % change, the actual units may be priced differently.

eskbanker

coyrls said:

eskbanker said:

coyrls said:

Not sure why you're seeing that, here is 6 months plotted on Trustnet, the performance is identical for any period:

Doesn't the reference at the bottom to "Performance values rebased to Pound Sterling" signify that they'll be using a standardised one-off conversion rate (such as today's) rather than retrospectively applying contemporaneous exchange rates over the period (which is perhaps what FT.com is doing)?

Isn't it likely to be the opposite?  If you use a one-off conversion rate, you would expect diversions between a US $ priced ETF vs a UK £ priced ETF but if you use the contemporaneous rate, you would expect no diversion, at least in terms of % change, the actual units may be priced differently.

Are there definitely two separate versions as such though?  It looks to me like there's just a dollar one, i.e. GBP pricing is only available by converting....

coyrls

eskbanker said:

coyrls said:

eskbanker said:

coyrls said:

Not sure why you're seeing that, here is 6 months plotted on Trustnet, the performance is identical for any period:

Doesn't the reference at the bottom to "Performance values rebased to Pound Sterling" signify that they'll be using a standardised one-off conversion rate (such as today's) rather than retrospectively applying contemporaneous exchange rates over the period (which is perhaps what FT.com is doing)?

Isn't it likely to be the opposite?  If you use a one-off conversion rate, you would expect diversions between a US $ priced ETF vs a UK £ priced ETF but if you use the contemporaneous rate, you would expect no diversion, at least in terms of % change, the actual units may be priced differently.

Are there definitely two separate versions as such though?  It looks to me like there's just a dollar one, i.e. GBP pricing is only available by converting....

There are two separate ETFs (A & B in the graph).  The US $ one is IUES and the UK £ one is IESU.