With Australia seemingly having dodged the bullets that have hit so many other members of the global economy—high debt levels, shaky currencies, stubbornly high unemployment—perhaps it should come as no surprise that the “lucky country” has been wooing investments that used to flow elsewhere. And ETFs are no different.
As reported earlier this year in Investment Advisor, there are a number of ETFs that have sought out the Land Down Under as a place to park dollars—American dollars, that is—in the hope of positive returns. Now two more have joined the pack: ProShares Ultra Australian Dollar (GDAY) and ProShares UltraShort Australian Dollar (CROC).
GDAY and CROC both launched Thursday. They are the latest additions to the geared currency ETF lineup at ProShares, which already offers investors opportunities in euros and Japanese yen via ETFs providing magnified or inverse exposure.
"The Australian dollar is one of the world’s most actively traded currencies," said Michael Sapir in a statement. The chairman and CEO of ProShare Capital Management, the sponsor of the funds, continued, "We are pleased to offer investors additional ways to manage risk or potentially take advantage of moves in this widely followed currency market."
According to ProShares, GDAY and CROC are the first U.S. ETFs offering magnified or inverse exposure to the Australian dollar. Bulls and bears alike (or would that be roos and koalas?) have something to choose from in these new ETFs, which offer both optimists and pessimists the chance to profit from the Aussie dollar and laugh like a kookaburra all the way to the bank.
GDAY seeks to provide 2x the daily performance of the U.S. dollar price of the Australian dollar, before fees and expenses, while CROC seeks to provide -2x the daily performance of the U.S. dollar price of the Australian dollar, before fees and expenses.