You change €1,000 into $1,000 and buy US shares. They rise 10%: $1,100. Meanwhile the euro rises 10% against the dollar. Back in euros, you have €1,000.
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Your shares are priced in dollars. To spend the gain in Europe, you change it back. When each euro costs more dollars, the same dollars bring home fewer euros.
From January to April 2025, large US companies fell 5.1% in dollars (the Russell 1000). For a euro saver, the dollar’s fall made it −13.5%.
A “world” fund is not spread evenly across currencies. About two thirds of it sits in US companies, so most of it moves with the dollar too.
Your fund’s page shows its split by country or currency. Some funds are “hedged”: they pay a small cost to take most of the currency move out, up or down.
Foreign shares carry two moves, the company’s and the currency’s. Both reach your euros.
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See which currencies your holdings are in.
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