If you’re on the hunt for exposure to the US dollar sector, it could be worth adding the BetaShares U.S Dollar ETF (ASX: USD) to your ASX watchlist. Let’s take a closer look at this BetaShares ETF.
What is the USD ETF used for?
The BetaShares USD ETF provides investors with exposure to the performance of the US dollar, relative to the Australian dollar.
Keep an eye on FUM
The BetaShares USD ETF had $211.49 million of money invested when we last pulled the monthly numbers. Given USD’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the US dollar sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
Fees and costs for investors
BetaShares charges investors a yearly management fee of 0.45% for the USD ETF. This means that if you invested $2,000 in USD for a full year, you could expect to pay management fees of around $9.00.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Summary
These are just some of the considerations or factors you would need to look at when weighing up the USD ETF. Before doing anything, take a look at our BetaShares USD report – it’s free. While you’re at it, don’t forget to search our complete list of ASX ETFs.
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