scroll

Thoughts on RBTZ ETF vs hedged ETF for AI and Robotics

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 01/02/2025

Thoughts on RBTZ ETF vs hedged ETF for AI and Robotics

Good morning Market Matters, Thanks for the reports and information, I enjoy reading the Market Matters perspective on the investment landscape. The weekend update on Saturday 25 January mentioned the RBTZ ETF as a means of investing in AI and robotics. This ETF is unhedged. As the AUD is at 10 year lows against the USD, would it be worth considering a hedged ETF if you hold the opinion the AUD will rise against the USD over the next few years? Thanks.

Answer

Hi Peter,

Thanks for the thumbs up!

Where the AUD goes is the million-dollar question here but with the RBA set to cut rates at a faster pace in 2025, assuming the Fed move at all, we cannot see a significant rebound in the AUD unless Beijing can reignite China’s economy.

Hence, we are comfortable with an unhedged AI ETF that holds the likes of Nvidia (12%) and Intuitive Surgical Inc (11%), i.e. $US denominated assets. We also think holding overseas exposures in the local currency can provide diversification benefits to a portfolio. For the Wholesale Portfolios James manages with international exposures, they are not hedged.

chart

Australian Dollar (AUDUSD)

LAST UPDATED 31/01/2025 15:29

Latest Reports

Afternoon report 17/04/2025

The Match Out: ASX strong as energy bounces back, commodity stocks impress on quarterlies

A bullish session after a decent hit to U.S markets overnight, particularly the tech sector which was -3.9% weaker amid further U.S tariff and policy intervention. It was a slow and steady move up over the day, opening flat but climbing ~5-10 points hour after hour.

Morning report 17/04/2025

What Matters Today: Did MM turn neutral towards Gold too early?

The ASX 200 performed well on Wednesday, considering US NASDAQ Futures were down over 2% by 4pm AEST, courtesy of poor news from both sides of the Atlantic before the respective bourses even opened. Global Tech stocks sank on a one-two of bad news for tech goliaths Nvidia and ASML, the last thing the embattled semiconductor sector needed.