What the BetaShares USD ETF actually does
The BetaShares USD ETF provides investors with exposure to the performance of the US dollar, relative to the Australian dollar.
Investors could use the BetaShares USD ETF to profit from a view that the US dollar will strengthen relative to the Australian dollar, or to hedge against US dollar currency risk for those who primarily invest in ASX shares that earn revenue in Australian dollars.
USD meets our minimum FUM criteria
The BetaShares USD ETF had $143.21 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.
Don’t forget USD’s fees
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 0.51% 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.
What to do next
If you’re weighing up investing in the USD ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free BetaShares USD report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the US dollar sector to compare your options.
