I’m curious about currency risk. I know that ETF’s that aren’t currency hedged expose you to the volatility of exchange rates, but I’m confused about how it works in practice.
As an example, if I buy an entirely US based ETF that isn’t currency hedged (like NDQ), does the fluctuations in the AUD:USD exchange rate only mean anything for me when I decide to sell my NDQ shares? Or is the currency exchange fluctuation accounted for in the daily ups and downs of NDQ share price? Does the % change in my NDQ holding on my brokerage account take the exchange rate into account already or am I going to get a surprise because of the exchange rate (either good or bad) when I sell?
Hope that makes sense…