Global X has launched a currency-hedged version of one of its most popular exchange-traded funds (ETF) onto the Australian Securities Exchange (ASX), providing investors with exposure to technology companies based in the United States, while reducing exchange rate risk.
The Global X FANG+ (currency-hedged) ETF, carrying the ASX code FHNG, will track the NYSE FANG+ Index, which in turn tracks 10 highly traded growth stocks from the technology, media, communications and consumer discretionary sectors.
Top holdings in the fund include technology giants Google, Meta, Microsoft and Nvidia, streaming platform Netflix, online e-commerce company Amazon and electric vehicle manufacturer and clean energy company Tesla.
FHNG is a currency-hedged version of Global X’s existing FANG+ ETF and charges a management fee of 38 basis points annually.
Global X chief executive Evan Metcalf said FHNG could be used as part of a growth-oriented portfolio and offers protection against adverse currency movements, creating more stable and predictable returns.
“The Australian dollar has softened considerably over the past two years and given this fluctuation, our clients are seeking to include A$-hedged products in their portfolios. Given FANG is entirely exposed to the US$, FHNG presents a strategic way to achieve this minimised currency risk while still offering a high-growth opportunity,” Metcalf said.
“With innovations such as cloud computing and artificial intelligence just beginning to scratch the surface, we are committed to offering investors solutions that engage with these transformative and long-term structural trends.”
With the launch of FHNG, Global X now offers 39 ETFs to Australian investors and announced it will introduce a currency-hedged version of its physical gold ETF later this quarter.
