What do you invest in?
Why have you chosen the US?
Can I invest in Australian stocks?
What is currency risk
Can I hedge my currency risk?
We invest in US equity markets
At Unhedged we use the power of algorithms to invest in ETFs (Exchange Traded Funds), individual stocks and bonds listed in US equity markets. These ETFs, in turn, invest in stocks, bonds, commodities, real estate and volatility. Using our Equal-Weight allocation pre-set, you can be invested in 20 to 150 different stocks and ETFs. It is hard to follow this many positions for us humans but for algorithms this is as easy as pie.
Why the US
First, as we trade with algorithms we need serious volume, and the US Market simply has more volume.
The US market is also home to a lot of algorithmic traders so the infrastructure available in the US markets is more developed than in other geographies we assessed.
We will keep developing our algorithms, and as we set up Unhedged as an international operation, we will keep adding markets and maybe even other asset classes, like crypto.
On a more philosophical note: it's probably safe to say that most people in Australia have most of their investments in Australian Dollars. Most people working in Australia get paid in Australian dollars, mortgages are mainly in Australian dollars and Australians' Super is most likely invested heavily in Australian stocks. It might not be a bad idea to get some exposure - through equities in general, to other major currencies like the US Dollar, the Euro and the British Pound to broaden your diversification and Unhedged helps you with that.
This is a general statement of course and should not be interpreted as Unhedged providing you with financial advice.
You can't yet invest in Australian stocks. We may invest in Australian Companies that are listed in the US though. But if this is important to you, ping us a message. We are here to listen!
Currency Risk (sometimes known as exchange rate risk) refers to the losses that an international transaction may incur due to currency fluctuations. It could be that the algorithms of Unhedged make a net profit, but that profit gets eaten up by an appreciation of the Australian Dollar. On the other hand, Unhedged could be neutral or produce a loss, and if the Australian Dollar goes down you might still make a profit.
We have not implemented a currency risk "hedging" strategy, but we are contemplating whether we should. We are happy to hear from you whether you think we should: ping us!
When you add funds to Unhedged, we convert it to USD. When you withdraw, we convert it back to AUD. Any currency conversion costs will be paid by Unhedged, there are no additional fees for you in this regard.
The value of your investment in the app is displayed in AUD. We are thinking to also add the USD value to the app. Let us know if that is a feature you might be interested in via email@example.com!
Links to related articles:
Impact of Buy/Sell spread
Information contained here is prepared by Unhedged Pty Ltd ACN 646 421 730 (AR 001288751) an authorised representative of Cache Investment Management Pty Ltd ACN 624 306 430 AFSL 514 360. Units in the Unhedged Fund are issued by Melbourne Securities Corporation Limited (ACN 160 326 545 AFSL 428 289). All information is general information only and doesn’t take into consideration your personal circumstances, financial situation or needs. Before making a financial decision you should understand the risks and read the relevant PDS and TMD and consider whether the product is right for you and seek advice if necessary. Any information contained here may have been automatically generated by an algorithm based on raw data inputs and has not been independently verified and is subject to change. Past performance is not indicative of future performance. Unhedged Fund APIR Code: UPL9838AU International Securities Identification Number (ISIN): AU60UPL98384. Copyright (C) 2022 Unhedged. All rights reserved.
Updated on: 09 / 05 / 2022