US stocks are particularly popular given that the S&P 500 Index (SP: INX) has outperformed the S&P/ASX 200 Index (ASX: XJO) for several years. 

Currency-hedging can reduce or amplify the returns for investors, and we are seeing this play out right now. 

It's dividend season, and a closer look shows distributions from some hedged ETFs are more than triple their unhedged counterparts. Woah.  

This largely has to do with changes to the US currency.

Since early CY25, the US dollar has been weakening against a strengthening Aussie currency. 

The Aussie dollar rose from about 62 US cents in January 2025 to a four-year high of 74 US cents in May this year. 

This has helped turbocharge distributions for some currency-hedged ETFs this season. 

The US dollar has been weakening amid expectations of interest rate cuts, concerns about the economic impact of fiscal policy, and broader geopolitical and trade uncertainty.

Meanwhile, the AUD is stronger as the outlook for interest rates improves, and rising commodity prices support our terms of trade.

Strong demand for our metals and minerals, driven by the green energy transition and the build-out of artificial intelligence (AI), also supports our currency, as foreign buyers typically pay for exports in Australian dollars.

Let's take a look at some examples of the hedging impact on ASX ETF distributions this season. 

ASX ETF distributions: Hedged vs. non-hedged 

The unhedged VanEck Morningstar Wide Moat ETF (ASX: MOAT) will pay $11.61 per unit this season. (By the way, MOAT is one of six ETFs paying a 10% dividend yield in a single payment this season.) 

Its currency-hedged counterpart, VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT), will pay $20.54 per unit. That's a 75% higher distribution than MOAT. 

The iShares S&P 500 ETF (ASX: IVV), the market's largest ETF tracking the S&P 500 Index (SP: .INX), is paying a distribution of 23.3 cents per unit this season. 

The currency-hedged version of IVV, iShares S&P 500 (AUD Hedged) ETF (ASX: IHVV), will pay more than 10x that amount — 270.27 cents per unit.

The Betashares Nasdaq 100 ETF (ASX: NDQ) will pay 90 cents per unit this season. 

The hedged version of this ETF, Betashares Nasdaq 100 Currency Hedged ETF (ASX: HNDQ), will pay 30% more at 120 cents per unit. 

iShares Global 100 ETF (ASX: IOO), which tracks the S&P Global 100 (Net) Index and is made up of 79% US stocks, is paying out 182 cents per unit this season.

The iShares Global 100 (Currency-hedged) ETF (ASX: IHOO) will pay investors 1,082 cents per unit, or almost 6x the IOO ETF. 

Global X S&P World ex Australia GARP ETF (ASX: GARP) will pay 70.76 cents per unit this season. 

Global X S&P World ex Australia GARP (Currency Hedged) ETF (ASX: GHRP) will pay almost 4x that amount at 269.5 cents per unit. 

Vanguard MSCI Index International Shares ETF (ASX: VGS), which invests in 1,500 stocks in developed nations outside Australia, and has a 77% US exposure, will pay 81.54 cents per unit. 

Its currency-hedged counterpart, Vanguard MSCI Index International Shares (Hedged) ETF (ASX: VGAD), will pay more than triple that amount at 293.5 cents per unit. 

Final distributions confirmed

ETF providers have confirmed their final distribution amounts for this season. 

If you own Vanguard ETFs, see this season's final distributions here.

Interested in VanEck ETFs? View final distributions here.

If you own Betashares ETFs, see final distributions here.

If you're invested in iShares ETFs, see final distributions here.

Invested in Global X ETFs? Find out final distributions here.

The post The currency-hedged ASX ETFs magnifying dividends by up to 10x this season appeared first on The Motley Fool Australia.

The ex-dividend date for the distributions listed below is next Wednesday, 1 July. The record date is 2 July.

The indicative payment date for most of these ETFs is 27 July.

There are some absolute whopper dividends available for investors who own or buy these ASX ETFs before their ex-dividend dates.

Let's take a look.

How does a 14% to 16% dividend yield in a single payment sound?

The stand-out is VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT), which will pay $20.54 per unit.

That's not a typo.

Today, the MHOT ETF is $138.40 per unit, which means this next distribution, on its own, represents a 14.8% dividend yield.

Let's just take a moment to let that soak in.

Also paying a massive dividend this time around is VanEck Gold Miners ETF (ASX: GDX).

GDX ETF will pay $17.99 per unit.

At the time of writing, ASX GDX is $111.09 per unit, which means the next dividend represents a 16.2% yield.

Why are these payments so big?

In the case of MHOT, this next dividend is the fruits of mainly US companies with major competitive advantages (moats), benefiting from a record-high market, turbocharged by the US dollar's weakness against an ascendant Aussie dollar this year.

In the case of GDX, the dividend is the result of miners' supercharged earnings from a skyrocketing gold price over the past two years.

Other dividends for VanEck ASX ETF investors

Here is a condensed list of estimated distributions that VanEck will pay ASX ETF investors on 27 July.

VanEck Morningstar Wide Moat ETF (ASX: MOAT) will pay $11.61 per unit.

The VanEck MSCI International Value ETF (ASX: VLUE) will pay $6.65 per unit.

VanEck MSCI Multifactor Emerging Markets Equity ETF (ASX: EMKT) will pay $4.64 per unit. 

The VanEck Morningstar International Wide Moat ETF (ASX: GOAT) will pay $2.68 per unit.

VanEck MSCI International Quality ETF (ASX: QUAL) will pay $2.16 per unit.

The VanEck Video Gaming and Esports ETF (ASX: ESPO) will pay $1.93 per unit.

VanEck Global Defence ETF (ASX: DFND) will pay $1.20 per unit. 

The VanEck FTSE China A50 ETF (ASX: CETF) will pay $1.19 per unit.

VanEck MSCI International Sustainable Equity ETF (ASX: ESGI) will pay $1.02 per unit.

But wait, there's more!

VanEck Australian Property ETF (ASX: MVA) will pay 79 cents per unit.

The VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) will pay 65 cents per unit.

The VanEck Australian Resources ETF (ASX: MVR) will pay 56 cents per unit.

VanEck Small Companies Masters ETF (ASX: MVS) will pay 27 cents per unit.

The VanEck Australian Banks ETF (ASX: MVB) will pay 15 cents per unit.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML) will pay 13 cents per unit.

The VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 12 cents per unit.

VanEck Global Clean Energy ETF (ASX: CLNE) will pay 7 cents per unit.

The VanEck Global Healthcare Leaders ETF (ASX: HLTH) will pay 4 cents per unit.

The post Own GDX, MOAT, or ESPO? VanEck just announced ASX ETF dividends appeared first on The Motley Fool Australia.

Investors in the VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT) will receive the largest payment of $10.99 per unit.

Those who hold the unhedged VanEck Morningstar Wide Moat ETF (ASX: MOAT) will get the second-highest distribution of $7.56 per unit.

These two ETFs are different in that they do not try to mirror the performance of a major index like the S&P/ASX 200 Index (ASX: XJO).

Instead, the MOAT ETFs track about 50 US shares that have significant competitive advantages, or in other words, a wide 'moat'.

The wider the moat, the more protected a company's brand and its products or services are from competitors in the marketplace.

Here is a summary of VanEck ETFs that will be paying dividends to investors today.

It's payday for VanEck ASX ETF investors!

VanEck Global Clean Energy ETF (ASX: CLNE) will pay 7 cents per unit.

VanEck FTSE China A50 ETF (ASX: CETF) will pay $1.27 per unit.

VanEck Global Defence ETF (ASX: DFND) will pay 3 cents per unit. Find out more about this ETF here.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY) will pay 20 cents per unit.

VanEck MSCI International Sustainable Equity ETF (ASX: ESGI) will pay $2.34 per unit.

VanEck Video Gaming and Esports ETF (ASX: ESPO) will pay $1.04 per unit.

VanEck Gold Miners ETF (ASX: GDX) will pay 63 cents per unit.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT) will pay $1.66 per unit.

VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) will pay 57 cents per unit.

VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 11.5 cents per unit.

VanEck Global Healthcare Leaders ETF (ASX: HLTH) will pay 2 cents per unit.

Here are a few more…

VanEck Australian Property ETF (ASX: MVA) will pay 42 cents per unit.

VanEck Australian Banks ETF (ASX: MVB) will pay 40 cents per unit.

VanEck Australian Resources ETF (ASX: MVR) will pay 51 cents per unit.

VanEck Small Companies Masters ETF (ASX: MVS) will pay 32 cents per unit.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML) will pay 9 cents per unit.

VanEck MSCI International Quality ETF (ASX: QUAL) will pay $1.23 per unit.

VanEck MSCI International Value ETF (ASX: VLUE) will pay $1.02 per unit.

VanEck ETFs among the market's top performers in FY25

According to ASX data, there were two VanEck ETFs among the six best-performing ETFs holding Aussie shares in FY25.

Ranked 4th, the VanEck Australian Banks ETF delivered a total annual return of 24.86%.

Ranked 6th, the VanEck Australian Property ETF produced a total annual return of 22.92%.

Another two VanEck ETFs featured in the six best-performing ETFs holding international shares in FY25.

Check them out here.

The post Invested in ASX MOAT or other VanEck ETFs? It's dividend day! appeared first on The Motley Fool Australia.