Klevah™

US Technology Shares

ASX Code: HNDQ
Index: Nasdaq 100

This is about the Betashares Nasdaq 100 Currency Hedged ETF - HNDQ.

The only stock market that has consistently beaten Australia is the United States due to the higher growth of their technology stocks. Without those tech stocks the US would have achieved about the same result as Australia except for lacking Franking Credits. This is why traditionally most Australian investors have not ventured outside of Australia.

The incredible financial performance of large technology companies in the US over the last few decades is what has attracted Australian investors and Superfunds to invest in the US. As a result, you may only want to invest in the technology sector of the US market when investing overseas. That is where the higher returns have been found for a significant time now. The Nasdaq 100 Index that the Betashares Nasdaq 100 Currency Hedged ETF invests according to, has achieved returns of over 17% over the last decade.

Visit the Betashares HNDQ website Click here

Investing in the Nasdaq 100 means you are invested in 100 companies that include the largest technology companies in the US. These are led by well-known technology titans such as Nvidia, Microsoft, Apple, Alphabet (Google), Amazon and Meta. The performance of this investment will be largely driven by the success of these companies. Your investment will in part also benefit from any new fast-growing companies in this space within the selection of 100 companies. The companies are chosen by taking the largest 100 companies on the Nasdaq exchange in the United States.

This exchange does not have a lot of the non-tech sector companies of the New York Stock Exchange and so investing in it is therefore investing heavily in tech. It does have some companies from other sectors in it such as Costco and Pepsi. This ETF can be a central holding to ensure that a portfolio benefits from the performance of these companies. It is not fully diversified across the US economy like the S&P 500 Index is.

There are other available ETFs that track that Index such as IHVV by BlackRock’s iShares brand. At 100 major companies, Betashares’ HNDQ fund is still a fairly well diversified investment with a superior track record of returns.

The ETF listed here, called HNDQ, is the currency hedged version of the fund. Currency movements between the Australian and US dollars will therefore not affect the returns of the investment.

Be sure to look carefully at the website to understand what you may be investing in. There are other ETFs available that track the performance of the Nasdaq 100 or focus on large international technology companies. You do not need to buy the ETF shares on the platform of the ETF managing company (in this case Betashares). They heavily market their share trading platform for buying their own shares to people looking at their ETFs. You can use your preferred share trading platform to buy your shares.

Click here to read about share trading platforms.
Click here to read about a basic strategy using investments like these.

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