BetaShares expands currency access on the ASX

Drew Corbett

BetaShares Capital Limited has listed two more currency ETFs on the Australian Securities Exchange (ASX). Trading under the ASX Codes 'POU' and 'EEU', BetaShares British Pound ETF and BetaShares Euro ETF track the performance of the British Pound and the Euro relative to the Australian dollar. The new ETFs employ the same simple, transparent and highly cost-effective structure of the BetaShares US Dollar ETF, which has been one of the most successful ETF launches in Australia since its introduction in February this year. The assets of the new funds consist of British Pounds or Euros held on deposit with JPMorgan Chase Bank.

Drew Corbett, Head of Investment Strategy & Distribution at BetaShares, pointed out the significant cost advantages of using currency ETFs compared to foreign currency bank accounts. "Our analysis shows investors who purchased British Pounds or Euros via a major bank were paying well over 10 times the cost of our ETFs for a $10,000 exposure over six months. For retail investors looking for unleveraged exposure to these currencies in a cost effective and simple manner, this is a very attractive way to do so," Mr Corbett said.

The new BetaShares currency ETFs provide investors with the ability to access GBP and Euros via a simple trade on the ASX, just like any share, allowing them to take a view on either currency.