Here is the article I like to review.
What I meant is that you sell off whatever one has the best exchange rate when it's time to sell.
Example: (All values listed in CAD) If I bought $100 of VUN and $100 of VTI when the exchange rate was 1 CAD =0.75 USD, and years later when I was looking to sell my shares had doubled in value and the exchange rate was now 1 CAD = 1 USD I would sell off my VUN before my VTI, because even if the VTI was purchased with Canadian currency at the time it is still held in USD.
Calculation breakdown:
VUN
Cost: $100 CAD
Value after X years: (Initial value) x (percent increase) x (1 + (difference between currency price at purchase - at sell)) ($100 x 200% 1+(1-1)) = $200
VTI
Cost: $100 CAD
Value after X years: (Initial value) x (percent increase) x (1 + (difference between currency price at purchase - at sell)) ($100 x 200% 1+(0.75-1)) = $150
Granted, this ignores all the other factors like the difference in MERs, and withholding tax, and any dividends that you're receiving over this period as the exchange rate is shifting. But, it does give you a little insulation in case you're concerned that the exchange rate might shift dramatically between when you buy and when you hope to retire.
Unless my math is way off, which is entirely possible.
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The above calculation is wrong!
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