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Highlights

  • The Betashares Crude Oil Index Currency Hedged Complex ETF provides access to crude oil futures without the complexity or costs of trading in the futures market or storing physical commodities.
  • The ETF has delivered a return of approximately 12% in the past year and around 6% in the past month.
  • The currency hedge minimises USD/AUD fluctuations, offering more direct exposure to oil price movements.

The Betashares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO) provides investors with exposure to crude oil futures, specifically tracking the performance of West Texas Intermediate (WTI) crude oil. This exchange traded fund is ideal for those looking to diversify their portfolios with oil price exposure while minimising currency risk. A standout feature of the ETF is its currency hedge, which helps mitigate the impact of fluctuations between the Australian Dollar (AUD) and the US Dollar (USD).

Key benefits of the ETF include:

  • Exposure to the performance of crude oil futures without the complications or costs associated with investing directly in the futures market or buying and storing physical commodities.
  • Hedging against fluctuations in the USD/AUD exchange rate, offering more direct exposure to the price of oil futures.
  • The fund is 100% backed by cash held by third party custodian.

Moreover, the ETF has provided a return of approximately 12% in the past year and around 6% in the past month.

OOO Technical Summary and Chart

On the daily chart, OOO's ETF prices are forming a symmetrical triangle pattern, suggesting that the sideways movement in the stock might persist in the near future. Additionally, the 14-period Relative Strength Index (RSI) is trading near its midpoint, reinforcing the likelihood of this scenario. Prices are trading between its previous peak and trough, which might serve as resistance and support levels for the ETF, respectively. A significant support level for the ETF is positioned at AUD 5.50, while critical resistance level is situated at AUD 6.22.

The BetaShares Crude Oil Index Currency Hedged ETF (ASX: OOO) offers an easy way to gain exposure to crude oil prices, reduces currency fluctuation impacts, and provides a simplified investment approach with performance that outperforms the underlying index.

However, it's important to remember that past performance is not a reliable indicator of future results. When selecting an ETF, it's essential to consider individual sector preferences, risk tolerance, and the specific performance of the underlying index.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Abbreviations

CMP: Current Market Price
SMA: Simple Moving Average
AUD: Australian Dollar
RSI: Relative Strength Index