In this episode of The Australian Finance Podcast, Owen Rask and Cameron Gleeson from Betashares dive into the world of currency hedging. If you invest in global markets — especially US stocks — you need to understand how foreign exchange (FX) movements can significantly impact your returns.
Cameron breaks down:
– What currency hedging means
– How the AUD/USD exchange rate affects your portfolio
– The difference between hedged and unhedged ETFs
– Why hedging can reduce volatility and risk
– How long-term investors should think about hedging
This episode will help you make more informed decisions with your overseas investments. If you’ve ever owned ETFs like NDQ, IVV, or VGS — this episode is for you!
Subscribe for weekly episodes via Apple, Spotify, or YouTube!
Follow us on Instagram and TikTok for more investing tips.
Topics Covered
– What is currency hedging?
– How the AUD/USD exchange rate affects returns
– Hedged vs unhedged ETF examples (NDQ vs HNDQ)
– When hedging helps (and when it doesn’t)
– What investors can learn from history (2001–2007)
– Why your time horizon matters
– A simple strategy using 30–35% hedging
– TOFA tax rules and why they matter
– How Betashares ETFs handle hedging and tax efficiently
– What to do if you’ve only ever invested unhedged
