Betashares has expanded its currency-hedged exchange-traded fund (ETF) offering with the release of a currency-hedged version of its FTSE 100 ETF.
The new FTSE 100 Currency Hedged ETF, which carries the Australian Securities Exchange (ASX) code H100, will track the performance of the Australian dollar-hedged FTSE 100 Index, which in turn tracks the 100 largest companies by market capitalisation listed on the London Stock Exchange.
The top holdings in the fund will include energy companies Shell and BP, financial institution HSBC, pharmaceutical company AstraZeneca and mining giants Rio Tinto and Glencore.
Betashares chief executive Alex Vynokur said: “Recent exchange rate volatility over the last several months is a timely reminder of the impact of currency fluctuations on investment performance.
“These fluctuations are often hard to predict and can make a significant difference to returns. With H100 we are further broadening our range of currency-hedged ETFs, with many investors looking to minimise the currency variable from the investment equation.
“The FTSE 100 Index provides investors with a handy source of diversification from financials and mining companies in Australia, and the technology sector in the US.
“Following the launch of H100, investors will be able to obtain currency-hedged exposure to this widely recognised benchmark in their portfolio. At the same time, investors will continue to be able to use our unhedged FTSE 100 ETF, F100, if desired.”
The launch of H100 increases the number of currency-hedged ETFs on offer via Betashares to 20, with those funds collectively holding $2.9 billion in funds under management.
The new hedged fund follows the recent announcement Betashares would release an investment platform providing access to any ETF listed on the ASX, as well as its expansion into superannuation with the purchase of the super operations of Bendigo and Adelaide Bank.
