Canadian High Interest Savings Bank Accounts

Will the fund's market value vary depending on the fluctuations of CAD vs. USD?

Yes. The fund value decreases as the Canadian dollar increases.

If I bought the funds when CAD is high and a year from the now the dollar loses value, will the market value of the fund lose value?

No, the fund will increase in value (see above).

Should I buy US index funds in USD?

Depends on where you think the Canadian Dollar will be compared with the US Dollar when you intend to cash in your fund. If you think the Canadian Dollar will be higher when you cash out compared with when you bought in, then buy the US dollar version of the fund. If you think the Canadian Dollar will be lower when you cash out, stick with the Canadian dollar version. Of course, the big trick is trying to figure out whether the Canadian Dollar will rise or fall, and there are probably as many different opinions on that subject as there are prople giving them. Good luck!

Myself, I deal in USD to CDN and with doing this trade over 10 years you never know when the USD or CDN will be a better vs the other.

My advice is to cut out the risk and stick with your home currency rather than take a risk and gamble your investment.

Mike