Betashares Nasdaq 100 ETF - Currency Hedged (ASX: HNDQ) — Why This ETF Remains One to Watch in the AI Trade

Sonal Goyal

26 August 2026 07:03 PM AEST

Betashares Nasdaq 100 ETF - Currency Hedged (ASX: HNDQ) — Why This ETF Remains One to Watch in the AI Trade

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Betashares Nasdaq 100 ETF - Currency Hedged (ASX: HNDQ)

Issuer: Betashares

The artificial-intelligence boom has kept US technology at the centre of global markets, and the Betashares Nasdaq 100 ETF - Currency Hedged (ASX: HNDQ) lets Australian investors ride that theme without the currency wobble. The fund tracks the Nasdaq-100 while hedging its US-dollar exposure back to the Australian dollar. After a strong twelve months, HNDQ sits at the heart of the debate over how much further the AI-tech trade can run.

What the ETF Does

HNDQ is a passively managed fund that tracks the Nasdaq-100 Index, which comprises around 100 of the largest non-financial companies listed on the Nasdaq exchange, dominated by US technology giants such as Apple, Microsoft, Nvidia, Amazon and Alphabet. The distinguishing feature is currency hedging: the fund neutralises most of the effect of moves in the US dollar against the Australian dollar, so returns reflect the underlying share performance rather than exchange-rate swings. That suits investors who want exposure to US technology but prefer to remove the currency variable. The portfolio is heavily concentrated in mega-cap technology and growth names, making it a focused way to access the companies driving the AI and cloud-computing themes. This concentration means a small number of very large companies drive much of the fund's return, so its fortunes are tightly linked to the performance of the technology sector's biggest names.

Why It Is in Focus

Artificial intelligence remains the market's defining narrative, with enormous Investment flowing into computing infrastructure, chips and AI-enabled software. The Nasdaq-100's largest constituents are central to that build-out, and their Earnings have underpinned much of the global market's advance. For Australian investors, the hedged structure has been relevant amid swings in the Australian dollar, since it isolates the technology exposure. Debate over whether AI-driven valuations can be sustained keeps funds like HNDQ prominent in market discussion through 2026.

What Could Drive It Next

The main drivers are the earnings of mega-cap technology companies, particularly those exposed to AI and cloud computing, and the durability of AI-related Capital spending. US interest-rate expectations, which influence growth-stock valuations, and the effectiveness of the currency hedge amid exchange-rate moves will also matter. Regulatory scrutiny of large technology companies, the competitive dynamics of the semiconductor and cloud markets, and any broadening of gains beyond the largest names into the wider index will also influence returns.

Risks to Watch

Concentration is a key risk, since a handful of mega-cap technology stocks dominate the index, so a setback among them can weigh heavily. Growth Stocks are sensitive to interest rates and can be volatile if AI expectations disappoint. While currency hedging removes most exchange-rate effects, it carries costs and can detract when the Australian dollar weakens against the US dollar. A rotation away from growth stocks toward value or defensive sectors could see the fund underperform the broad market, and the narrow, sector-heavy composition offers little Diversification benefit when technology stumbles.

Closing

HNDQ offers concentrated, currency-hedged exposure to the US technology giants at the forefront of the AI era. Its strong performance reflects that theme's dominance, and its next phase will depend on mega-cap earnings, the staying power of AI spending, and the direction of US interest rates.

FAQs

Q: What index does HNDQ track?

A:HNDQ tracks the Nasdaq-100 Index, comprising around 100 of the largest non-financial companies listed on the Nasdaq exchange, dominated by major US technology names.

Q: What does the currency hedging in HNDQ actually do?

A:The hedge aims to neutralise most of the effect of movements between the US dollar and the Australian dollar, so returns largely reflect the performance of the underlying shares rather than exchange-rate swings.

Q: What is the main risk with HNDQ?

A:Concentration is the key risk. A handful of mega-cap technology stocks dominate the index, so a setback among them, or a broader rotation away from growth stocks, can weigh heavily on the fund's performance.

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