NDQvsHNDQ
Is currency hedging worth the extra fees for Nasdaq exposure?
BetaShares NASDAQ 100 ETF · BetaShares NASDAQ 100 (Hedged) ETF
HNDQ hedges AUD/USD currency risk for an extra 3bp p.a. - useful when the AUD rises, but a drag when it falls. Unhedged (NDQ) has typically won over long periods as the AUD trended lower, though hedging outcomes vary widely year-to-year.
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BetaShares manages NDQ, Australia's largest technology-focused ETF by assets, tracking the Nasdaq-100 Index which comprises 100 of the biggest non-financial companies listed on the Nasdaq exchange. Despite occasional misconceptions, NDQ provides unhedged exposure, meaning Australian investors are subject to AUD/USD currency movements alongside the performance of holdings like Apple, Microsoft, and NVIDIA. Tech-focused investors and those seeking high-growth US equity exposure as a satellite allocation will find NDQ a straightforward way to access the world's most prominent technology and innovation companies.
BetaShares Nasdaq 100 ETF (Hedged) tracks the Nasdaq-100 Index with Australian dollar hedging, removing the impact of AUD/USD currency movements on returns. The hedging mechanism means investors receive returns that more closely mirror the underlying US index performance, though the cost of maintaining the currency hedge results in slightly higher overall fees compared to unhedged alternatives. It suits Australian investors who are bullish on US tech-heavy equities but want to eliminate currency risk from their investment thesis.