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Highlights

  • ASX: OOO tracks WTI crude oil futures while mitigating currency risk between the AUD and USD.
  • As of 31 December 2024, the fund has delivered a total return of 11.73% over the past year.
  • The fund has 100% allocation in the crude oil sector.

The Betashares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO) is an exchange-traded fund designed to provide exposure to crude oil futures, specifically tracking the performance of West Texas Intermediate (WTI) crude oil. This exchange-traded fund offers a unique combination of oil price exposure and protection against currency volatility, making it one of the ideal choices for those interested in diversifying their portfolios.

A key feature of this fund is its currency hedge. The fund mitigates the impact of exchange rate movements between the Australian Dollar (AUD) and the US Dollar (USD), ensuring that fluctuations in the currency exchange rate do not unduly affect its performance. This is particularly valuable for Australian investors who want to gain exposure to the oil market without being exposed to currency risks tied to the USD.

The Betashares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO) offers several benefits:

  • Exposure to Crude Oil Prices
    The ETF allows investors to tap into the potential of the crude oil market, which is driven by factors such as supply and demand, geopolitical events, and changes in global energy consumption.
  • Currency Protection
    The ETF’s currency-hedged structure is designed to neutralise the impact of AUD/USD fluctuations.
  • Simplified Investment
    Investing in oil futures or managing physical oil assets can be complicated and costly. The OOO ETF simplifies this by providing an easy-to-access platform for investing in the oil market, all while avoiding the complexities of futures contracts or storage logistics.
  • Diversification Benefits
    The Betashares OOO ETF can offer valuable diversification by providing exposure to a commodity that often behaves independently of other assets like stocks and bonds.

Fund Performance (as of 31 December 2024)

OOO has provided a return of 6.19% over the past month and 11.73% over the past year.

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 may continue in the near future. Additionally, the 14-period Relative Strength Index (RSI) is oscillating between the 30 and 70 levels, supporting the likelihood of this scenario. Prices are trading between the previous peak and trough, which could act as resistance and support levels for the ETF, respectively. A significant support level for the ETF is positioned at AUD 5.15, while a significant resistance level is at AUD 6.22.

The Betashares Crude Oil Index Currency Hedged ETF (ASX: OOO) offers a convenient way to gain exposure to crude oil prices while mitigating the impact of currency fluctuations. The fund's structure offers diversification benefits and a simplified approach to investing in oil, with recent performance showing favourable returns relative to the broader market. 

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