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ETFS Enhanced USD Cash

About this Fund

Fund Detail

PDS
FUND MANAGER ETFS Management (Aus) Ltd
ASX Code ZUSD*
APIR
ASSET CLASS EXCHANGE TRADED FUNDS
INVESTMENT STYLE The Fund invests in overnight U.S. dollar-denominated deposits.
INVESTMENT PROFILE The Fund aims to provide investors with a return that (before fees and expenses) tracks the performance of the U.S. dollar (USD) relative to the Australian dollar (AUD).
CURRENCY MANAGEMENT Active management
INCEPTION DATE 10-06-2015
BENCHMARK AUDUSD Exchange Rate
FUND SIZE AUDUSD Exchange Rate
DISTRIBUTION FREQUENCY Quarterly
NO. OF HOLDINGS
FEES 0.30% p.a. of the NAV of the Trust
STRUCTURE

Benefits

Benefits

Benefits of investing in the ETFS Enhanced USD Cash ETF

Why ZUSD?

  • Simplicity: ZUSD provides easy access to U.S. dollar deposits without the need to open a foreign currency account.
  • Cost effective: ZUSD is the lowest-cost U.S. dollar ETF available in the Australian market, with a management fee of 0.30%, and may be more cost effective than holding deposits directly for some investors.
  • Liquidity: ZUSD invests only in U.S. dollar cash, making it extremely liquid.
RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

Fund overview

ZUSD is an exchange traded fund (ETF) which is tradable by investors on stock exchanges intraday and can be created and redeemed daily by certain financial institutions (known as Authorised Participants).

ZUSD captures movements in the AUD/USD exchange rate by investing substantially all of its assets in overnight U.S. dollar-denominated deposits. Deposits are held with Australia and New Zealand Banking Group Limited (ANZ) and earn a variable rate of interest. Holders of ZUSD will benefit from an appreciation of the U.S. dollar against the Australian dollar.

How to use ZUSD in a Portfolio?

  • Express a view on the U.S. against the Australian dollar
  • Gain diversification through direct exposure to currencies
  • Hedge currency risks within a portfolio

About ETF Securities Australia

ETF Securities Australia is an expert, independent provider of accessible investment solutions. We use transparent and cost effective investment solutions to enable Australian investors to achieve their desired outcome, while also intelligently diversifying their portfolios. We also act as a dedicated source of actionable investor knowledge for Australian investors and their advisers.

Mandate

How we invest your money

Each Fund seeks to meet its investment objective by investing cash received in connection with Creations in the Reference Currency in interest bearing deposit accounts at a Deposit Bank. Cash received from Authorised Participants in connection with a Creation that is in the form of the Reference Currency will be deposited into the deposit account at the Deposit Bank. Cash received from Authorised Participants in connection with a Creation that is in the form of AUD will be converted by the Responsible Entity into the Reference Currency through a foreign exchange transaction at the relevant Benchmark Rate. The resulting cash will then be deposited in the Reference Currency into the appropriate interest bearing deposit account at the Deposit Bank.

The Responsible Entity may choose to hold its cash deposits with different financial institutions and in selecting which such institution will consider several factors such as the credit worthiness of the financial institution, the regulatory status of the financial institution, any interest rate offered and other terms applicable to any accounts. Again, in so doing, the Responsible Entity will take into account a number of factors and will act in such a way as to ensure that the best interests of Holders are protected.

Further details relating to the Deposit Bank can be found in Section 10 (Additional Information) of the PDS.