When to buy hedged ETF’s?
I'm unsure whether to buy NDQ or HNDQ? Is it a good time to buy the hedged ETF? What do I need to consider when making this decision? Thanks
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Answer
Hi Roslyn,
The decision comes down to whether you believe the Australian Dollar will appreciate, or depreciate, against the $US.
- If you believe the $A will remain weak against the Greenback, it makes sense to buy the unhedged NDQ.
- Conversely, if you believe the $A will regain some of the ground lost against the $US stay the hedged ETF HNDQ is worth considering.
NB The NDQ incurs cost of 0.48% pa whereas the Hedged version is slightly more expensive costing 0.51%.
