BetaShares AUDS ETF (ASX:AUDS)
The BetaShares AUDS Fund provides investors with geared exposure to the change in value of the Australian dollar, relative to the US dollar.
What does the AUDS invest in?
AUDS invests in cash and cash equivalents and buys Australian dollar/US dollar futures contracts. The idea is that buying these futures typically generates a positive return when the Australian dollar strengthens relative to the US dollar, and a negative return when the Australian dollar weakens relative to the US dollar. So, an investor would expect to profit from the AUDS ETF when the AUD/USD exchange rate goes up.
What do investors use AUDS for?
This ETF could be used by investors to gain magnified exposure to a strengthening 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.
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