IFRAvsVBLD
Global infrastructure exposure: is currency hedging worth the cost?
VanEck FTSE Global Infrastructure (Hedged) ETF · Vanguard Global Infrastructure Index ETF
VBLD hedges AUD/USD currency risk for an extra 5bp p.a. - useful when the AUD rises, but a drag when it falls. Unhedged (IFRA) has typically won over long periods as the AUD trended lower, though hedging outcomes vary widely year-to-year.
Score Breakdown
Fund Profiles
Managed by BlackRock's iShares, IFRA is an ASX-listed ETF providing exposure to global infrastructure companies by tracking the FTSE Global Core Infrastructure 50/50 Index. The fund is fully hedged to the Australian dollar, removing currency fluctuations from returns, and holds utilities, toll roads, airports, and energy infrastructure assets that tend to exhibit bond-proxy behaviour with relatively stable income streams. Income-focused investors and SMSFs seeking diversified global infrastructure exposure with reduced currency risk will find IFRA well suited as a defensive, yield-oriented portfolio allocation.
Vanguard manages VBLD, an ASX-listed ETF providing unhedged exposure to global infrastructure companies by tracking the FTSE Global Core Infrastructure Index. Unlike its hedged counterpart IFRA, VBLD leaves currency exposure unmanaged, meaning returns will reflect both the performance of underlying infrastructure assets and movements in the Australian dollar against foreign currencies. Investors who prefer full foreign currency exposure - or who view AUD weakness as a potential tailwind - will find VBLD a suitable way to access global utilities, transport, and energy infrastructure within a diversified portfolio.