Is there an ETF to hedge against a falling $US?
Hi James Is there an ASX listed ETF that can be used to hedge the international equities portfolio against a rising AUD? Many thanks Alex
Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi James Is there an ASX listed ETF that can be used to hedge the international equities portfolio against a rising AUD? Many thanks Alex
Hi Alex,
The best option is the BetaShares Strong Australian Dollar ETF (AUDS) which is traded on the ASX. Its goal is to track the performance of the $A v $US, it provides geared exposure to the $A of around 2.5x i.e. a 1% rally by the $A against the $US will generate a 2.5% return, and of course vice versa.
This allows investors to hedge all or part of their US international exposure. e.g. if you have $A1000 in Apple it would be closely hedged against a fall in the $US by having $400 in the AUDS but always remember there will be no benefit if the $A falls.
We prefer a non-hedged exposure with the currency movements working to create a smoother ride.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.