Betashares launches currency hedged US ETF

ETFs currency hedging BetaShares Global X ETFs

16 July 2024
| By Laura Dew |
image
image
expand image

​Betashares has launched a currency hedged version of its S&P 500 Equal Weight ETF.

The Betashares S&P 500 Equal Weight Currency Hedged ETF (HQUS) provides exposure to 500 leading listed US companies, with each holding in the index weighted equally and the foreign currency exposure hedged back to the Australian dollar.

Betashares currently offers 23 currency hedged ETFs for Australian investors.

The original S&P 500 Equal Weight ETF was launched in 2014 and has over $380 million in funds under management. The ETF allows investors to maintain exposure to a broad portfolio of US equities without being heavily exposed to a select number of mega-cap companies.

This is particularly important given the dominance of the Magnificent Seven stocks of Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla which make up a large percentage of the index.

CEO Alex Vynokur said: “The equally weighted version of the S&P 500 index offers exposure to the US share market, while at the same time reducing some of the concentration risks associated with its market capitalisation weighted equivalent. As a result of the launch of HQUS, investors will be able to obtain currency hedged exposure to an equally weighted version of the S&P 500 Index in their portfolio.

“HQUS expands the range of investment options available that seek to minimise the impact of currency fluctuations on investment performance.”

Earlier this month, Global X launched a currency-hedged version of its FANG+ ETF, which provides exposure to the major 10 technology companies. Global X described the ETF as offering a “core building block for growth-orientated portfolios”.

​Evan Metcalf, chief executive of Global X, said the decision had been taken to launch a currency-hedged version of the product as a way for Australian investors to minimise currency risk.

“The Australian dollar has softened considerably over the past two years, and given this fluctuation, our clients are seeking to include AUD-hedged products in their portfolios. Given FANG is entirely exposed to the USD, FHNG presents a strategic way to achieve this minimised currency risk, while still offering a high growth opportunity.”
 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 day 4 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

5 days 10 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 3 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 5 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

4 days 8 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

3 days 11 hours ago