Global X ETFs has announced the launch of its Global X FANG+ (Currency Hedged) ETF (ASX: FHNG), offering Australian investors exposure to companies at the forefront of “next-generation” technology with minimised exchange rate risk.
FHNG, Global X clarified, is the currency hedged version of the Global X FANG+ ETF (ASX: FANG), which was launched in 2020 and holds more than $645 million in net assets.
A culmination of both “household names and newcomers”, the new hedged strategy provides exposure to 10 companies driving technology innovation across multiple segments, currency hedged to Australian dollar.
Commenting on the launch, chief executive officer Evan Metcalf described FHNG as a “core building block” for growth-oriented portfolios, highlighting its unconstrained approach that incorporates next-generation technology companies across various 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,” Metcalf said.
“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.”
According to the ETF provider, the fund aims to provide investors with a return that, before fees and expenses, tracks the performance of the NYSE FANG+ Index (AUD Hedged). It includes the “Magnificent Seven” stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla – which have outperformed the broader S&P 500 over the last three years.
“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,” Metcalf said.
FHNG marks the 39th product to be added to the firm’s suite of ETFs in Australia.
Global X has also announced plans to launch a currency hedged physical gold ETF later this quarter, following the launch of its Global X Gold Bullion ETF (ASX: GXLD), offering investors a lower-cost alternative to GOLD, designed for longer-term investments.
GXLD complements the firm’s flagship product, Global X Physical Gold (ASX: GOLD), and aims to replicate the movements in the Australian dollar price of gold by investing in physical gold bullion bars.
