What’s the difference between hedged and unhedged ETFs?

While all of our ETFs are priced in New Zealand dollars, many invest in assets overseas which must be bought and sold in foreign currencies like USD. This means the ETF’s value will be affected by the underlying assets as well as currency movements.

Currency hedging prevents changes in investment value due to currency movements, reducing the potential volatility of the ETF.

A fully hedged ETF’s value is only affected by performance of the underlying assets.

Learn more about The role of hedging in your portfolio.