If you’re considering getting exposure to the International shares sector, the BetaShares Nasdaq 100 ETF – Currency Hedged (ASX: HNDQ) might be one ASX ETF to watch in May.
How the HNDQ ETF fits into an ASX portfolio
The BetaShares Nasdaq 100 ETF invests in 100 of the largest non-financial companies listed on the NASDAQ stock exchange (i.e. the USA). This is the currency hedge version of the BetaShares NASDAQ 100 ETF (ASX: NDQ).
Investors could use the HNDQ ETF to get exposure to the 100 largest technology, communications, industrial and other ‘new age’ style companies listed on the NASDAQ stock exchange. An investor would choose this ETF over the NDQ ETF if they wanted a hedged exposure.
HNDQ meets our minimum level for FUM
The BetaShares HNDQ ETF had $123.67 million of money invested when we last pulled the monthly numbers. Given HNDQ’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
What about management fees and costs?
BetaShares charges investors a yearly management fee of 0.51% for the HNDQ ETF. This means that if you invested $2,000 in HNDQ for a full year, you could expect to pay management fees of around $10.20.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Before buying any ETF based on what you read here on Best ETFs, check out our BetaShares HNDQ report – it’s completely free! Then, search our complete list of ASX ETFs to do a proper side-by-side comparison of your chosen sector or thematic.
