BetaShares YANK ETF (ASX:YANK)
The BetaShares YANK Fund provides investors with geared exposure to the change in value of the US dollar, relative to the Australian dollar.
What does the YANK invest in?
YANK invests in cash and cash equivalents and sells Australian dollar/US dollar futures contracts. The idea is that selling these futures typically generates a positive return when the US dollar strengthens relative to the Australian dollar, and vice versa (a negative return when the US dollar weakens relative to the Australian dollar). So, an investor would expect to profit from the YANK ETF when the AUD/USD exchange rate goes down.
What do investors use YANK for?
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.
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