Betashares Nasdaq ETF has both a hedged and unhedged version. Why you would choose one over the other?

Hi Paul I would like to invest in the Betashares Nasdaq ETF. It has both a hedged and unhedged version.Could you give me a reason why you would choose one over the other ie maybe a high AUD you would choose the unhedged version.

A: You would take out the currency hedged version (HNDQ) if you expect the currency to increase over the medium term. That’s our assumption, and why we are have been suggesting to subscribers that they consider currency hedged versions (where available). The only real downside is the additional cost – the management fee for the hedged version for HNDQ is 0.51% pa vs 0.48% pa for the unhedged version (NDQ).

If you feel that the aussie dollar is fully priced near 80 US cents and is more likely to head down, stay unhedged and potentially, pick up the “extra” return from a currency depreciation.

 


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