I'm trying to understand the basic risk of investing internationally. I'm going to make up some numbers to make the math easier. I'm also going to use a paid dividend for this example. US based brokerage account and I purchase the fund with dollars. not sure that matters.
If I have 1 share of VGER (Vanguard German all cap) and it pays a dividend, is the dividend paid in euros even though I bought the fund with dollars?
I've found information about a fund being hedged or unhedged, and maybe that is answering my question, but I'm not certain.
For unhedged funds...
If the dollar is strong (1:2), a 1 euro dividend would be .50 into my account.
If the dollar is weak (2:1), a 1 euro dividend would be $2 in my account?
Do I have that right?
For hedged funds...a bit more complicated because of how hedging currency rates works.
How do I determine if a fund is hedged or unhedged?
Thanks!