Thread: I Fund dying?

Originally Posted by tsptalk

Hi Buzz! One major factor for the I-fund is the strength of the dollar. The I fund has tanked lately because the Euro has become so weak because of the European debt issues, and that has strengthened the U.S. dollar.

When the dollar goes up, it takes fewer dollar to buy something that remained fixed in value. Thus a rising dollar will make the I-fund (and other funds, but more so the I-fund) worth fewer dollars.

Can someone explain what happened to the I Fund today? I assume the answer is FV, but even after reading all of these I Fund Threads I still don't get it. Today the EU Markets were all down around 1%, but the EFA bounced around the neutral line all day and finally closed up 0.17%. Also the Euro gained 0.85% on the USD. So, I figured that the I Fund would end up around 0.17 + 0.85 = 1.02% up. But instead it came in at -0.67% down. Is this because 0.17 - 0.85 = -0.68%? This is the opposite of what Tom stated in this quote. A week USD should make for a higher I Fund price, not lower...I think... Thanks in advance for straightening my head out on this.

Take a look at the daily EAFE return for Friday...

http://www.msci.com/products/indices...html?undefined

(You may have click "I agree" at the bottom of the first page.)

Loving me some I Fund right now.

Originally Posted by respro

Respro here. 50% S 50% I since early 2008. I lost a good chunk of change but didn't panic. I made all I lost back plus a nice return over the last few years. Question is, will the mess in europe kill the I fund long term? Should I get out of the I now before Greece defaults? Anyway, glad to meet you folks! OH, Thanks for the info.

Respro

The answer to your question might be answered by reading this thread.