$A decline sparks ETF flows
The decline in the value of the Australian dollar has prompted interest from Australian dollars into US dollar exchange traded funds (ETFs), according to ETF specialist, BetaShares.
In an analysis issued early this week, BetaShares said it had seen approximately $30 million of net inflows into the BetaShares US Dollar ETF (ASX code “USD”) since the start of September.
The fund is designed to provide exposure to the performance of the US dollar relative to the Australian dollar, meaning the value of the fund will go up as the US dollar appreciates, and vice versa. The fund now has over $200 million in assets under management.
Commenting on the inflows, BetaShares’ managing director, Alex Vynokur, said it was indicative of the fact that many investors expected the Australian dollar to continue its recent decline.
“We are currently seeing a sharp increase in the level of interest in the USD ETF, both in terms of
incoming enquiries and net inflows, which seems to reveal an undercurrent of pessimism regarding the Australian dollar,” he said.
“As the ETF landscape continues to mature in Australia, there has been significant growth in the number of investors using exchange traded funds to execute tactical positions across asset classes,” Vynokur said.
Recommended for you
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
Sequoia Financial Group has seen a top-level reshuffle as the chair of the board, John Larsen, steps down after five years in the position.
As statements of advice move into the rear-view mirror, Vital Business Partners explores how financial advisers are adopting innovative documentation strategies.
Adviser Ratings has explored whether there is a financial benefit to advice firms seeking to have a specialised client base in terms of client assets and fees charged.
