Find out what the ETF does
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.
YANK’s FUM does not meet our minimum hurdle
The BetaShares YANK ETF had $8.23 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.
Pay attention to yearly costs & fees
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 0.5% 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.
Our takeaway
If you’re thinking about investing in YANK, bear in mind that this is just an introductory glance at the ETF. To explore further, check out our free BetaShares YANK report. And for good measure, search our complete list of ASX ETFs for similar ETFs in the US dollar sector to do a good comparison.
