Global X ETFS offers ‘Magnificent 7’ and more in Currency Hedged ETF launch

Global X ETFS offers ‘Magnificent 7’ and more in Currency Hedged ETF launch

Global X ETFs have announced the launch of its Global X FANG+ (Currency Hedged) ETF (ASX: FHNG), offering Australian investors exposure to companies at the leading edge of next-generation technology with minimised exchange rate risk.​

FHNG is the currency hedged version of the company’s most popular growth orientated fund, the Global X FANG+ ETF (ASX: FANG), which was launched in 2020 and holds more than $645 million in net assets.​

The new hedged strategy provides exposure to ten companies driving technology innovation across multiple segments, including both household names and newcomers, currency hedged to the AUD. The fund aims to provide investors with a return that (before fees and expenses) tracks the performance of the NYSE® FANG+™ Index (AUD Hedged), with a competitive management fee of 0.38% p.a. It includes the ‘Magnificent 7’ stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla – which have outperformed the broader S&P 500 over the last three years.​

Global X ETFS Australia CEO Evan Metcalf said FHNG is an attractive option as a core building block for growth-oriented portfolios, offering an unconstrained approach that incorporates the most innovating next-generation technology companies across a variety of segments and sectors.​

“The Australian dollar has softened considerably over the past two years, and given this fluctuation, our clients are seeking to include AUD-hedged products in their portfolios. Given FANG is entirely exposed to the USD, FHNG presents a strategic way to achieve this minimised currency risk, while still offering a high growth opportunity,”​ Metcalf said.​

“Global X remains at the forefront of capitalising on the significant potential of emerging macrotrends driven by technological advancements. With innovations such as cloud computing and artificial intelligence having only just scratched the surface, we are committed to offering investors solutions that engage with these transformative and long-term structural trends.”​

Global X also plans to launch a currency hedged physical gold ETF later this quarter. Global X is the industry leader in gold ETFs, having launched GOLD in 2003 as the world’s first physically backed gold exchange traded product, and it remains the largest and most liquid of its kind in Australia. Earlier this year the company launched its Global X Gold Bullion ETF (ASX: GXLD), offering investors a lower-cost alternative to GOLD, designed for longer-term investments.

FHNG is the 39th product to be added to Global X’s suite of ETFs in Australia.