The firm’s flagship ETF is now available as a currency hedged vehicle with the launch of the Betashares S&P 500 Equal Weight Currency Hedged ETF (ASX: HQUS) on the ASX.
In a statement on Monday, Betashares said the new hedged ETF was created to expand the range of investment tools that seek to minimise the impact of currency fluctuations on performance.
Namely, HQUS provides exposure to 500 leading listed US companies, with each holding in the index weighted equally and the foreign currency exposure hedged back to the Australian dollar.
According to the ETF provider, S&P 500 Equal Weight ETF (ASX: QUS) has grown to over $380 million in funds under management, demonstrating its strong appeal to investors looking to maintain exposure to a broad portfolio of US shares as opposed to a small concentration of “mega cap” companies.
“The equally weighted version of the S&P 500 index offers exposure to the US sharemarket, while at the same time, reducing some of the concentration risks associated with its market capitalisation weighted equivalent,” said Betashares chief executive Alex Vynokur, adding that the top five stocks in the S&P 500 now account for over 28 per cent of the index by market capitalisation.
“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,” Vynokur said.
“HQUS expands the range of investment options available that seek to minimise the impact of currency fluctuations on investment performance.”
International equities, Betashares said, has been the preferred asset class for ETF investors this year, receiving the highest level of net inflows on an asset class level, as sentiment shifts towards more growth-oriented exposures.
The firm also clarified that it has the broadest range of currency hedged ETFs in Australia – now totalling 23, following the launch of HQUS, and holding a cumulative $4.4 billion in funds under management.
HQUS will join Betashares’ suite of local ETFs, alongside the launch of the Australian Major Bank Subordinated Bond ETF (BSUB) on the ASX in May.
Betashares also unveiled its “Wealth Builder” range in April, comprising two “moderately geared” ETFs, anticipated to provide a gearing ratio between 30 to 40 per cent on a given day.
The fund manager said at the time that the Betashares Wealth Builder Australia 200 Geared Complex ETF will provide moderately geared exposure to the returns of the broad Australian sharemarket while the Betashares Wealth Builder Diversified All Growth Geared Complex ETF will provide moderately geared exposure to the returns of an “all-cap, all-world” share portfolio.
