Getting exposure to the US dollar sector has never been easier thanks to ASX ETFs like the BetaShares U.S Dollar ETF (ASX: USD). That said, no matter how easy it seems to be, we think it’s still important to do your own ETF review. So, here’s an overview of the BetaShares U.S Dollar ETF (ASX:USD) ETF, plus how to take your research to the next level.
How the USD ETF could be used in portfolios
The BetaShares USD ETF provides investors with exposure to the performance of the US dollar, relative to the Australian dollar.
USD exceeds our minimum market cap (FUM) criteria
The BetaShares USD ETF had $274.05 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.
USD’s fees & costs explained
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.
This is just a quick overview of the USD ETF. Before ‘testing the depth of water with both feet’ so to speak, be sure to read the USD ETF’s Product Disclosure Statement (PDS), available on the BetaShares website, or speak to your financial adviser. For another handy resource, take a look at our BetaShares USD report. You can also 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.