Key Highlights

  • The fund aims to provide magnified long exposure to the Australian dollar relative to the US dollar.
  • The fund is about $20.76 million in size, and the listing shows cash at 100% of assets.
  • The management fee is 1.38%, and the listing shows no annual yield.
  • The listing shows one holding, with a 3.60% weighting that is not explained in the listing.

Betashares Strong Australian Dollar Complex ETF (ASX:AUDS) is designed to provide cost-effective geared exposure to changes in the value of the Australian dollar relative to the US dollar, with the aim of a magnified long position in the Australian dollar. The units were listed at $6.30, the fund is about $20.76 million in size, and the management fee is 1.38%. The fund was admitted to the ASX on 24 January 2017, and it is categorised as an alternative product rather than a bond or Equity fund.

Ticker

ASX:AUDS

Listed price

$6.30

Fund size

$20.76 million

Management fee

1.38%

Units outstanding

3,327,293

Category

Alternative - Other

How the exposure works

The fund's objective is to deliver magnified exposure to the Australian dollar against the US dollar, so its unit price should move by more than the currency pair itself in either direction. The listing shows cash at 100% of Assets and stocks, bonds and other holdings at zero, which reflects a structure built on currency Derivatives rather than direct asset holdings.

The listing shows one holding, a 3.60% weighting in DW8 Ltd. The listing does not explain why that position appears in a fund whose objective is currency exposure, so investors should look for further detail in the fund's product documents.

Income and costs

The management fee is 1.38%, which is high compared with most ETFs in this series. The listing shows no annual yield, because returns come from the movement in the currency rather than from interest or Dividend income.

Risks to weigh

Gearing magnifies losses when the Australian dollar falls against the US dollar, and the fund can lose value quickly. Currency derivative positions carry counterparty and rollover risk, and the fund's small size can affect how easily units trade. The unexplained holding on the listing is a further point of uncertainty that investors should resolve before investing. This product suits investors who understand geared currency positions.

Final Word

The Betashares Strong Australian Dollar Complex ETF offers magnified exposure to the Australian dollar against the US dollar, at a high fee and with significant downside if the currency moves against it. Investors should weigh the gearing and the unexplained holding before considering the fund.