BetaShares Strong Australian Dollar ETF (AUDS) $5.70

The “strong” AUDS ETF, traded on the ASX, affords greater leverage to the $A against the $US. If we are bullish the $A, bearish the $US, this is an ETF to consider.

With currencies generally far less volatile than most other financial asset classes, the AUDS offers ~2.5x leverage on the $A while charging a 1.38% expense ratio, which is not too bad considering the assets being controlled. Hence, if the $A rallies by 2% against the $US, the AUDS ETF will increase by ~5%, all we have to do is buy at the right time! The $A has a few forces at play from looming RBA rate cuts (bearish) to an improving Chinese economy (bullish), though the biggest influence is the fate of the $US i.e. the AUD is a small cork in a big ocean!

• We are bullish on the $A through 2025/6, targeting the 70c area, which should see the AUDS trade up towards the $7 area.

NB We are more likely to use currency ETFs in “Shawns Trading Ideas” than in our Core ETF Portfolio.