BlackRock introduces currency-hedged share class on iShares Nasdaq 100 ETF

Sep 12th, 2018 | By | Category: Equities

BlackRock has launched the iShares Nasdaq 100 UCITS ETF EUR Hedged (NQSE GY) on Xetra, offering currency-hedged exposure to the well-known Nasdaq 100 Index.

BlackRock introduces currency hedging to iShares Nasdaq 100 ETF

BlackRock offers one of the largest Nasdaq 100 ETFs in Europe with AUM of €2.1bn.

Via the new listing investors can gain access to a portfolio of US large-cap stocks with a strong technology leaning while hedging currency risk between the US dollar and the fund’s trading currency – the euro.

The Nasdaq 100 Index is one of the most widely followed benchmarks for the US equity market.

It is well known for being ‘tech heavy’ (technology is the largest sector exposure at 59.3%) but also includes industrial, retail, telecommunication, biotechnology, health care, transportation, media and service companies.

The largest constituents are currently Apple (12.5%), Amazon (10.9%), Microsoft (9.8%), Alphabet (8.9%), and Facebook (4.6%).

The currency-hedged listing comes with a total expense ratio of 0.36%, slightly higher than the unhedged version of the fund – the iShares Nasdaq 100 UCITS ETF (SXRV GY) – which costs 0.33% and has €2.1 billion in assets under management.

Both the unhedged and currency-hedged versions of the fund reinvest income within the fund.

While a fee of 0.36% for the new listing is competitive, investors can obtain the same euro-hedged exposure to the Nasdaq 100 Index through the Invesco EQQQ Nasdaq-100 EUR-Hedged UCITS ETF (EQEU GY) for the slightly lower price tag of 0.35%. EQEU has €100 million in AUM.

Invesco also offers the largest unhedged UCITS Nasdaq 100 ETF in Europe – the Invesco Nasdaq-100 UCITS ETF (NAET GY) – which just surpasses the iShares fund with €2.2bn in AUM. It is also cheaper with a TER of 0.30%.

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