Dod101 wrote:scrumpyjack wrote:When you buy VWRL on the LSE there is no currency conversion, it is quoted in GBP and you buy in GBP. Most of the time there will be sellers as well who similarly are trading in GBP.
There will be a cost to the dividend conversion and firms like HL make a very large profit on those conversions. You could go for VWRP instead, which is the same but is accumulating so there is no currency conversion, the dividends are in effect automatically reinvested.
Presumably what you are saying is that there is no obvious currency conversion to the UK based buyer/seller. Currency conversion takes place 'behind the scenes'.
When I buy shares quoted in a foreign currency (for example a Canadian bank) I accumulate dividends in the foreign currency and then buy more shares in that currency which avoids any conversion costs. Sooner or later if/when I want to use the dividends in sterling, I would accumulate say a year's worth and then convert them in one transaction. I try to avoid a series of small conversions.
Dod
Not really. Most trading of VWRL on the LSE is UK holders buying and selling in GBP from/to UK market markers, so no currency conversion is involved.
Vanguard is not redeeming and issuing shares to enable these trades to go through.