Here is the article.
Scenario
- you buy $100 CAD of VTI and VUN on the same day with exchange of 1 CAD = 0.75 USD
- your shares in the underlying US equities double in value
- you sell both when 1 CAD = 1 USD
- ignore MERs/exchange fees/trade fees/dividends
VUN
- $100 CAD buys X shares of US equites worth $75 USD
- on day of sale you still have X shares of US equities worth $150 USD
- you sell them at get $150 CAD at the current exchange
VTI
- $100 CAD buys x shares of US equities worth $75 USD
- on day of sale you still have X shares of US equities worth $150 USD
- you sell them and get $150 CAD at the current exchange
No difference.
Where your calculations went wrong is that you doubled the value of each account in both currencies. In reality if the CDN dollar got significantly stronger over the timeframe of the investment VUN's returns shown in CAD would be lower as a % than VTI's returns shown in USD.
The way to look at it is both VUN and VTI buy exactly the same underlying investments so they cannot have a different value ever once you take out fees/taxes and such.
- you buy $100 CAD of VTI and VUN on the same day with exchange of 1 CAD = 0.75 USD
- your shares in the underlying US equities double in value
- you sell both when 1 CAD = 1 USD
- ignore MERs/exchange fees/trade fees/dividends
VUN
- $100 CAD buys X shares of US equites worth $75 USD
- on day of sale you still have X shares of US equities worth $150 USD
- you sell them at get $150 CAD at the current exchange
VTI
- $100 CAD buys x shares of US equities worth $75 USD
- on day of sale you still have X shares of US equities worth $150 USD
- you sell them and get $150 CAD at the current exchange
No difference.
Where your calculations went wrong is that you doubled the value of each account in both currencies. In reality if the CDN dollar got significantly stronger over the timeframe of the investment VUN's returns shown in CAD would be lower as a % than VTI's returns shown in USD.
The way to look at it is both VUN and VTI buy exactly the same underlying investments so they cannot have a different value ever once you take out fees/taxes and such.
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