In this episode of The Australian Finance Podcast, Owen Rask and Cameron Gleeson from Betashares dive into the world of currency hedging. If you invest in global markets — especially US stocks — you need to understand how foreign exchange (FX) movements can significantly impact your returns.
Cameron breaks down:
– What currency hedging means
– How the AUD/USD exchange rate affects your portfolio
– The difference between hedged and unhedged ETFs
– Why hedging can reduce volatility and risk
– How long-term investors should think about hedging
This episode will help you make more informed decisions with your overseas investments. If you’ve ever owned ETFs like NDQ, IVV, or VGS — this episode is for you!
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Topics Covered
– What is currency hedging?
– How the AUD/USD exchange rate affects returns
– Hedged vs unhedged ETF examples (NDQ vs HNDQ)
– When hedging helps (and when it doesn’t)
– What investors can learn from history (2001–2007)
– Why your time horizon matters
– A simple strategy using 30–35% hedging
– TOFA tax rules and why they matter
– How Betashares ETFs handle hedging and tax efficiently
– What to do if you’ve only ever invested unhedged
Resources for this episode
📘 Before you hedge – Betashares guide to currency hedging: Read here
📚 Rask’s free investing courses – https://education.rask.com.au/
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DISCLAIMER This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs before acting on it.
If you’re unsure, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance.
The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG) – https://www.rask.com.au/fsg
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Australian Finance Podcast