Your ETF questions answered: hedging, fund size & super overlaps

Learn the key differences between hedged and unhedged international ETFs and what ETF fund size can (and can’t) tell you.

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About this episode

In this Australian Finance Podcast episode, Owen is away so your host Gemma Mitchell is joined by Mitchell Sneddon (one of our hosts of the Australian Investor Podcast) to answer your weekly investing questions on ETFs and portfolio construction. They cover:

  • Hedged vs unhedged international ETFs (and when it matters)
  • Whether ETF fund size and liquidity should influence your choice
  • How to think about overlap between super investments and investments outside super
  • Kids investing via minor trust accounts and the risks/tax considerations of geared ETFs
  • Distribution yield vs total return (and what investors should prioritise)

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Topics Covered

  • What’s the difference between hedged and unhedged international ETFs?
  • Currency risk vs portfolio diversification over the long term
  • Does the size of an ETF fund matter (and what “liquidity” actually means)?
  • Spreads, trading volume, and why AUM isn’t the whole story
  • Investing inside super vs outside super: are you “doubling up”?
  • Overlap, overall asset allocation, and seeing your wealth as one portfolio
  • ETF selection for kids: minor trust accounts basics
  • Are geared ETFs ever appropriate for long time horizons?
  • Tax considerations and why leverage can complicate outcomes
  • Distribution yield vs total return: what each measure tells you
  • Why chasing yield can backfire (and what to focus on instead

 

You will learn about:

  • Hedged vs Unhedged ETFs (currency risk explained)
  • ETF fund size, liquidity, spreads & closures (what to check)
  • Investing inside super vs outside super (portfolio overlap & asset allocation)
  • Minor trust accounts for kids (ETF investing considerations)
  • Geared ETFs (how they work, risks, and potential tax complexity)
  • Distribution yield vs total return (which metric matters most)

 

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