Betashares has introduced a currency-hedged version of its S&P 500 Equal Weight exchange-traded fund (ETF) on the Australian Securities Exchange (ASX), marking the twenty-third hedged offering from the ETF provider.
The Betashares S&P 500 Equal Weight Currency Hedged ETF, listed under the ASX code HQUS, provides exposure to 500 of the largest companies on the United States share market, with each holding in the index weighted equally and the foreign currency exposure hedged back to the Australian dollar.
The ETF charges an annual management fee of 32 basis points and includes holdings in companies such as Tesla, Ford, FedEx and Intel.
Betashares chief executive Alex Vynokur noted HQUS is ideal for Australian investors who want to avoid overexposure to large companies and benefit from currency hedging to protect against movements in exchange rates for diversified exposure to the US market.
“The equally weighted version of the S&P 500 index offers exposure to the US share market, while at the same time reducing some of the concentration risks associated with its market capitalisation weighted equivalent,” Vynokur said.
“As a result of the launch of HQUS, investors will be able to obtain currency-hedged exposure to an equally weighted version of the S&P 500 index in their portfolio. HQUS expands the range of investment options available that seek to minimise the impact of currency fluctuations on investment performance.”
According to Betashares, international equities have been the preferred asset class for ETF investors this year, receiving the highest level of net inflows as sentiment shifts towards more growth-oriented exposures.
This trend is reflected in the underlying fund the hedged version is based on, with the Betashares S&P 500 Equal Weight ETF (ASX: QUS) growing to over $380 million in funds under management.
Following the release of its FTSE 100 Currency Hedged ETF last year, Betashares now offers 23 currency-hedged ETFs, holding a total of $4.4 billion in funds under management.
