As currency hedging strategies gain popularity, ETF providers broadly agree they offer clear benefits in a weaker US dollar environment.
In its latest market analysis, Global X noted that while most Australian ETF investors have traditionally favoured unhedged currency ETFs for global exposure, its counterpart has grown significantly more popular over the past year.
According to the firm, before 2025, currency-hedged ETFs typically took up around a 10 to 15 per cent share of global equity ETF allocations. However, as investors began to place greater emphasis on managing currency risk, that share has now grown to around 20 per cent.
