new ETF in GBP

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new ETF in GBP2018-04-15T16:56:41+00:00

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  • brwg
    Participant
    Post count: 19

    I am trying to create new ETF: ISF,MIDD, and CUKX.  They are all GBP denominated FTSE index linked ETF.  However, the symbol manager does not have GBP as one of its currencies.

    How can we create ETF in GBP?

     

    thanks

     

    Bryan

  • Frank Grossmann
    Moderator
    Post count: 167

    First thing to do is to choose Yahoo as data provider if you use foreign stocks and ETFs. In symbol manager you have to insert the full Yahoo symbol name which is for example ISF.L (L for London stock exchange). You can also select Yahoo as the historical data provider here. This will overwrite the selection if from startup you would for example use Tiingo.
    Now you have to do a separate strategy for the UK stocks. If you want to use this UK strategy alone, then there is no need to currency convert it to USD, however if you want to use it within a USD meta-strategy then you should currency convert the strategy. For this add the Yahoo symbol GBP=X (USD/GBP) to QuantTrader using the symbol manager. Now open your strategy within the portfolio manager and select GBP=X as the “Currency conversion ETF”. This will multiply the portfolio chart by the GBP/USD chart. Make sure visually looking at the chart that you use the good currency conversion ETF because there are always 2 of them for GBP/USD or USD/GBP.

  • brwg
    Participant
    Post count: 19

    Frank:

    thanks for your reply.

    1. I followed your instruction and created three symbols: ISF.L, CUKX.L and MIDD.L. However, their returns do not look right.

    For example, I create a single position strategy with only ISF.L all the time. Its 3 year CAGR is 370% and no return charts appear in the top and bottom charts. This is the same case for CUKX and MIDD.

    2. When I set up those symbols:

    a. I used the symbol manager.
    b. In the currency option, I chose USD as there is no GBP in the drop down menu. Does this matter
    c. I used Yahoo as the default data provider
    d. I chose the close price.

    What have I done wrong?

    thanks

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