Australian advisers shift toward hedged US tech ETFs
ETF Shares introduced two currency-hedged ETFs focused on US technology to the ASX on 15 September. The ETFS Magnificent 7+ Currency Hedged ETF (HULK) and the ETFS US Technology Currency Hedged ETF (HTTP) cater to investors aiming to minimize foreign exchange risk while accessing major US tech companies.
The HTTP fund follows the largest and most liquid US tech firms, including Nvidia, Apple, Microsoft, and Alphabet. It is designed as a direct investment option for those wanting exposure to US technology without currency volatility. The HULK fund covers the top 10 Nasdaq companies—such as Tesla, Meta, and Micron Technology—which the provider describes as having strong market positions due to their extensive user bases and integrated systems, creating high entry barriers and customer loyalty.
The management fee for HULK is 0.19% per annum and 0.17% per annum for HTTP. These join ETF Shares’ existing ETFS Magnificent 7+ ETF (HUGE), which holds $29 million in assets, and the ETFS US Technology ETF (WWW), with $24 million. All four were launched in May 2025.
Currency hedging is becoming a key focus for Australian financial advisers. A study by MSCI revealed that over two-thirds now prefer either a flexible combination of hedged and unhedged ETFs or primarily hedged exposure, compared to 21% who accept full currency exposure. Nearly half adjust their hedging approach based on market conditions, indicating a preference for adaptability over rigid strategies.
The findings show a clear change in how advisers handle foreign exchange risk. While 45% use a balanced mix of hedged and unhedged funds, 23% choose full hedging to eliminate currency risk entirely. Only 9% treat hedging as a secondary consideration, and 1% avoid international equity ETFs completely.
ETF Shares, founded in April 2025 by former Global X executives Man and David Tuckwell, targets advisers and retail investors through an “adviser-first” distribution model. Alongside the co-founders is Arjun Shanker as its chief revenue officer, who also served at Global X as a senior business development manager. Tuckwell serves as chief investment officer, while Man is the CEO.
These new funds align with broader trends in Australian investing, where advisers increasingly treat currency exposure as a deliberate choice rather than an incidental factor.
Investors have until 15 September to evaluate whether these funds match their risk strategies. The provider frames them as flexible tools for advisers to adjust exposure based on market conditions, rather than a standard approach.
