Gives investors a simple and accessible way to obtain magnified “long” exposure to the value of U.S. Dollar relative to the Australian Dollar.
A 1% increase in the value of the U.S. Dollar relative to the Australian 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 U.S. Dollar will strengthen relative to the Australian Dollar via an efficient use of capital. Hedge against USD currency risk – reduce exposure to movements in AUD/USD exchange rates. Diversify a portfolio – currencies have historically shown low correlation to equities, fixed income and most other asset classes