HNDQ ETF: Hedging Out Currency Risk in Nasdaq 100 Exposure

The Betashares Nasdaq 100 Currency Hedged ETF (ASX: HNDQ) offers Australian investors exposure to the largest non-financial companies on the Nasdaq, including tech giants like Apple and Microsoft, with US-dollar currency exposure hedged back into Australian dollars.

This fund is the currency-hedged sibling of Betashares' popular unhedged Nasdaq 100 fund and behaves differently when the Australian dollar moves. With a more hawkish US Federal Reserve and a sensitive Australian dollar, the decision to hedge or not has become increasingly relevant.

HNDQ tracks the Nasdaq 100 Currency Hedged AUD Index before fees and expenses, with management costs of around 0.51% per annum. The fund aims to isolate the underlying equity return by applying a currency hedge on top of its exposure to the unhedged Nasdaq 100 fund.