Q. IJH (ASX) Vs IJH (ARCX) Why do we get different signals if the ETF’s have the same holdings of the SP 400 mid cap?
A. IJH is an ETF that is designed to mirror the performance of the SP 400 midcaps. There are 2 IJH ETF’s available to invest in, one on the US market (ARCX) and the other in the Australian market (ASX).
Because each one of these ETF’s transacts on a different market the price and therefore the movements of each will differ due to currency fluctuations.
IJH in Australia must purchases component stocks from the SP 400 mid cap index in US dollars. Its price in Australian dollars will therefore fluctuate as a result of day to day currency movements, when compared directly to its US equivalent, and it will also therefore produce slightly different signals.