Gives investors a simple and accessible way to obtain magnified “long” exposure to the value of Australian Dollar relative to the U.S. Dollar.
A 1% increase in the value of the Australian Dollar relative to the U.S. Dollar on a given day can generally be expected to deliver a 2.0% to 2.75% increase in the value of the Fund (and vice versa). Profit from a view that the Australian Dollar will strengthen relative to the U.S. Dollar via an efficient use of capital. Hedge international investments – reduce the impact of currency movements from investments denominated in U.S. Dollars. Diversify a portfolio – currencies have historically shown low correlation to equities, fixed income and most other asset classes