HNDQ ETF Guide: Hedged Access To The Nasdaq 100 With Betashares ETF

The HNDQ ETF, officially the Betashares Nasdaq 100 ETF – Currency Hedged, gives Australian investors exposure to the Nasdaq 100 while substantially reducing the impact of AUD/USD currency moves. That makes it a very different proposition from simply buying an unhedged U.S. growth ETF.

Can Australians buy this ETF?

Short answer: Yes. HNDQ is designed specifically for Australian investors and trades on the ASX.

Australian investors do not need to use a U.S. broker to access this exposure. HNDQ is an ASX-listed, Australian-domiciled ETF, so it fits cleanly into a standard local brokerage account and local ETF workflow.

The more important decision is whether you want the Nasdaq 100 with AUD hedging or without it. If you want to reduce the impact of a falling U.S. dollar on your returns, HNDQ is the local hedged option. If you want to keep the full USD exposure, NDQ is usually the simpler comparison.

ETF at a glance

What does the ETF actually do?

HNDQ aims to track the performance of the Nasdaq 100 Currency Hedged AUD Index before fees and expenses. The underlying index includes 100 of the largest non-financial companies listed on the Nasdaq market.

In practice, HNDQ gives Australians access to the same broad group of major U.S. growth companies that sit inside the Nasdaq 100, but with the foreign currency exposure hedged back to the Australian dollar. That means returns should be driven much more by the performance of the underlying shares and much less by movements in the AUD/USD exchange rate.

Betashares states that HNDQ currently obtains its exposure by investing in NDQ and then applying the currency hedge. So the stock exposure is broadly the same as NDQ, but the currency experience is materially different.

What is inside the fund?

Because HNDQ uses NDQ as the underlying exposure source, the portfolio is effectively the Nasdaq 100 with currency hedging layered on top. That means the holdings profile remains concentrated in large U.S. technology and growth-oriented companies.

Top holdings

The concentration profile is one of the key things Australians need to understand. HNDQ is not a broad global shares ETF. It is a focused large-cap U.S. growth ETF, and its return pattern is still heavily influenced by the biggest tech names.

With more than 96% of the weighting in the US: even though HNDQ trades on the ASX and is Australian-domiciled, the underlying economic exposure is still overwhelmingly U.S.-based.

The Strategy

The strategy is straightforward. HNDQ seeks to track the Nasdaq 100 Currency Hedged AUD Index, which takes the Nasdaq 100 and overlays a hedge designed to reduce the effect of U.S. dollar movements relative to the Australian dollar.

Betashares explicitly states that HNDQ currently obtains its investment exposure by investing in NDQ, with the foreign currency exposure hedged back to AUD. That makes HNDQ, in practical terms, the hedged sibling of NDQ rather than a completely separate stock-selection product. That matters because the core choice is not really “HNDQ or not?” but rather hedged Nasdaq 100 exposure versus unhedged Nasdaq 100 exposure.

Currency exposure

Currency setup: HNDQ is designed to substantially reduce the effect of movements in the U.S. dollar against the Australian dollar.

This is the main reason to choose HNDQ over NDQ. If the Nasdaq 100 rises strongly but the AUD also rises sharply against the USD, an unhedged investor may give back part of those gains in Australian dollar terms. HNDQ is designed to reduce that effect.

• Base exposure: U.S. large-cap growth stocks
• Listed in: Australian dollars on the ASX
• Hedged to AUD? Yes
• Main currency trade-off: Lower currency volatility, but less benefit if the U.S. dollar strengthens against the Australian dollar

In simple terms, HNDQ is usually more attractive when an Australian investor wants the Nasdaq 100 without making a separate active bet on the U.S. dollar.

Tax notes

HNDQ is built for the local market, so the tax/admin experience is simpler for Australians than buying a U.S.-listed ETF directly.

• Fund domicile: Australian-domiciled
• Likely tax reporting document: Local annual tax statement from the issuer
• Foreign income considerations: Still relevant because the underlying exposure is offshore, but handled within a local ETF wrapper
• Extra cross-border admin? Lower than with direct U.S.-listed ETFs
• PDS / TMD available? Yes, via Betashares fund materials and TMD pages

This is one of the practical reasons some Australians prefer local wrappers even when the underlying exposure is global or U.S.-based.

Performance and income

HNDQ’s performance should broadly track the Nasdaq 100 in local-currency terms, but with the impact of AUD/USD currency movements reduced. That means it can outperform NDQ in periods when the Australian dollar strengthens, and underperform NDQ when the U.S. dollar strengthens.

Distributions are semi-annual, so investors should think of HNDQ primarily as a growth exposure rather than an income ETF.

Key risks

• Concentration risk: The Nasdaq 100 remains heavily influenced by a relatively small number of mega-cap growth stocks.
• Sector risk: The fund is strongly tilted toward technology and communication-related businesses.
• Market risk: A broad sell-off in U.S. growth stocks can hit HNDQ hard even if the hedge works as intended.
• Hedging risk: Currency hedging reduces one source of volatility, but it does not eliminate equity risk and may reduce gains when the USD rises.
• Style risk: Growth-heavy portfolios can underperform for long stretches if market leadership shifts toward value or more defensive sectors.

So while HNDQ can be a useful portfolio tool for Australians, it is still best thought of as a focused growth ETF, not a core whole-market holding.

Australian-listed alternatives

For most, the practical choice is usually between HNDQ, NDQ and QNDQ rather than between HNDQ and the U.S.-listed QQQ.

In plain English: choose HNDQ if you want the Nasdaq 100 but want to minimise the effect of AUD/USD swings; choose NDQ if you want the same equity exposure but are comfortable holding the currency risk; choose QNDQ if your main concern is stock concentration rather than currency.

Final verdict

HNDQ is one of the cleanest ways for Australians to access the Nasdaq 100 with AUD hedging built in. That makes it especially useful for investors who like U.S. growth equities but do not want their result dominated by exchange-rate movements.

It is not a broad global ETF, and it is not low-risk. But for the right investor, HNDQ can be very practical, particularly when the goal is to express a view on U.S. large-cap growth while keeping the currency setting more controlled.

Frequently asked questions

What does the HNDQ ETF invest in?

HNDQ gives investors exposure to the Nasdaq 100, with the foreign currency exposure hedged back to Australian dollars.

Can Australians buy HNDQ directly?

Yes. It is listed on the ASX and designed for Australian investors.

What is the difference between HNDQ and NDQ?

Both target Nasdaq 100 exposure, but HNDQ is hedged to AUD while NDQ leaves the USD exposure unhedged.

What is the difference between HNDQ and QNDQ?

HNDQ follows a standard market-cap-weighted Nasdaq 100 approach, while QNDQ follows an equal-weight approach that reduces concentration in the biggest names.

Does HNDQ suit long-term investors?

It can, but it is still a concentrated U.S. growth ETF. It is usually better used as a focused portfolio component rather than a complete portfolio on its own.

What is the main risk for Australian investors?

The biggest risk is still equity concentration and sector concentration in U.S. growth stocks. The hedge reduces currency risk, but it does not reduce sharemarket risk.