Australian and ASX-listed ETFs like the BetaShares YANK ETF (ASX: YANK) are gaining more attention than ever because of how easy they make it for investors to get exposure to the US dollar sector. Here’s a quick review of the YANK ETF.
What does the YANK ETF do for a diversified portfolio?
The BetaShares YANK Fund provides investors with geared exposure to the change in value of the US dollar, relative to the Australian dollar.
The BetaShares YANK Fund could be used by investors to gain magnified exposure to a weakening Australian dollar against that of the US. Gearing magnifies gains and losses and typically involves higher levels of volatility, so it may not be a suitable strategy for all investors.
How big is the BetaShares YANK ETF?
The BetaShares YANK ETF had $10.39 million of money invested when we last pulled the monthly numbers. With a funds under management (FUM) or ‘market cap’ figure of less than $100 million, it’s important to consider if this ETF is still too small.
We say an ETF with more than $100 million invested is typically more sustainable than one with less than $100 million (at least). This is because if an ETF is too small, it may not be sustainable for an ETF issuer/provider, such as BetaShares, to continue to operate it.
That said, there are exceptions to this rule of thumb, especially if the ETF issuer is committed to growing the ETF’s FUM to the point where it becomes profitable.
YANK ETF fees reviewed
BetaShares charges investors a yearly management fee of 1.38% for the YANK ETF. This means that if you invested $2,000 in YANK for a full year, you could expect to pay management fees of around $27.60.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Even if you like what you see, before diving straight into buying the YANK ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our BetaShares YANK report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
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