Horizons launches Australian dollar ETF

Horizons Exchange Traded Funds and BetaPro Management have announced the launch of the Horizons Australian Dollar Currency ETF, which offers investors direct access to foreign currency investing.

“The Australian dollar has been one of the top performing currencies over the last couple of years, benefitting from attractive interest rates, the country’s rich natural resources and a close proximity to rapidly developing Asian markets,” said Howard Atkinson, CEO of Horizons Exchange Traded Funds.

The ETF seeks to reflect the price in Canadian dollars of the Australian dollar, net of expenses, by investing primarily in cash and cash equivalents that are denominated in the Australian dollar. It will make monthly distributions of any income earned on the cash and cash equivalents it holds, net of fees and expenses.

“You may want to invest in the Australian dollar because you believe it will continue to deliver strong performance, or maybe you want to earn a higher yield on a currency that has demonstrated good correlation to the Canadian dollar,” Atkinson said. “Either way, using a currency ETF is probably the simplest and most cost-effective way to invest in Australian currency.”

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