Horizons launches Canada’s first Australian Currency ETF

Howard Atkinson

Horizons Exchange Traded Funds and BetaPro Management have announced the launch of the Horizons Australian Dollar Currency ETF, an exchange traded fund, which offers investors direct access to foreign currency investing. The Australian Dollar ETF began trading on the Toronto Stock Exchange July 20, 2011, under the symbol ASD. The Australian Dollar 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. ASD is structured as an ETF and therefore has all the characteristics of an ETF, including intraday liquidity, a low cost structure, and portfolio transparency. The Australian Dollar ETF will make monthly distributions of any income earned on the cash and cash equivalents it holds, net of fees and expenses.

"The Australian dollar has been one of the top performing currencies over the last couple of years, benefiting 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. With an annual management fee of only 0.45%, the Australian Dollar ETF provides a low cost method for investors to gain access to the Australian dollar. The Australian dollar has been particularly popular with foreign investors recently, since the Australian overnight lending rate is more than 4.50%, according to the Reserve Bank of Australia.