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Key Takeaways

• ETF currencies may seem confusing at first. It may seem intuitive to look for ETFs in your home currency. But this is not always the best choice.
• There are four currency types when looking at an ETF (i) the underlying assets’ currencies (ii) the hedging currency (iii) the trading currency and (iv) the Fund base currency.
• However, only the first two of them are really important. Make sure you understand the currencies you will be exposed to and hedge, if needed. If available (but this is optional) try to buy a share class denominated in your home currency. 
• A single ETF, like the Vanguard FTSE All-World UCITS ETF can have multiple ETF share classes to suit different investor preferences (for example with respect to currency hedging or dividend distribution policy).
• The underlying assets’ currencies and the fund base currency are valid at Fund level (e.g. all share classes have the same underlying assets’ currencies).
• However, a trading currency and currency hedging is specific to the share class you invest in.