BetaShares launches British Pound and Euro currency ETFs: ASX Codes POU and EEU

July 8, 2011 - PRLog -- SYDNEY, 11 July 2011: BetaShares Capital Limited (BetaShares) has today 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 (GBP £) and the Euro (€) relative to the Australian dollar (A$).

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.

The launch comes at a time of historic strength in the A$, which recently hit a 26 year high against the British Pound.  The local currency is also at close to 20 year highs against the Euro.

The ETFs should appeal to investors looking for a simple way to capitalise on any potential weakening in the A$ relative to either currency. For example, if the British Pound goes up 10% against the A$ (i.e., if the A$ falls in value), the value of the ETF should go up 10% too (before fees and expenses).

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. An individual seeking to invest A$10,000 in either GBP or Euros with one of the major Australian banks could pay up to $800 over a six month period due to fees, costs and poor exchange rates. By contrast, that same investment in the relevant ETF would cost around A$60. The cost savings primarily derive from the wholesale foreign currency rates the ETFs are able to access.

“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.

“Although complexity and cost are barriers to currency exposure for retail investors, BetaShares is providing more choices for Australian investors in a simple and cost efficient way. Through our range of currency ETFs, Australians can take long or short term views on three of the largest currencies in the world.”

The launch of these two currency ETFs brings to 6 the total number of ETFs listed by BetaShares on the ASX.  

“The new currency ETFs are another example of BetaShares’ ability to quickly respond to market demand.  Indeed, the BetaShares US Dollar ETF was one of the top five traded ETFs over the last few months, indicating significant demand for currency solutions through an ETF,” Mr Corbett concluded.

Further information can be found at www.betashares.com.au and www.asx.com.au.
Media inquiries:

Yolanda Beattie
Honner Media
Yolanda@honnermedia.com.au
+61 2 8248 3744
+61 450 327 785   

Drew Corbett
BetaShares
drew.corbett@betashares.com.au
+61 2 9290 6803

About BetaShares
BetaShares is a specialist provider of ETFs designed for Australian investors. BetaShares’ objective is to expand the universe of investment possibilities open to investors by providing ETFs that empower investors to implement their investment strategies with ease.

About BetaShares ETFs
BetaShares ETFs are Australian domiciled ETFs which trade on the Australian Securities Exchange, and are bought and sold by investors like shares. BetaShares will deliver ETF products that allow investors to track the performance of a range of market indices and asset classes.
Australian-owned and managed, BetaShares is affiliated with BetaPro Management, one of the largest ETF issuers in North America.

This information has been prepared by BetaShares Capital Ltd (ACN 139 566 868 AFS License 341181) (“BetaShares”). This is general information only and does not take into account the objectives, financial situation or needs of any investor so it may not be appropriate for you. Before making an investment decision investors should consider the product disclosure statement (‘PDS’) for BetaShares Currency ETFs, and their circumstances and obtain financial advice. The PDS is available at www.betashares.com.au or by calling 1300 487 577. Only investors who are authorised as trading participants under the Australian Securities Exchange (ASX) Market Rules may invest through this PDS. Other investors may buy units in the Fund on the ASX through a stockbroker, financial adviser or online broker. This document does not constitute an offer of, or an invitation to purchase or subscribe for securities.
An investment in the BetaShares ETFs is subject to investment risk including possible delays in repayment and loss of income and principal invested. Neither BetaShares nor BetaShares Holdings Pty Ltd guarantees the performance of the ETFs or the repayment of capital or any particular rate of return. Past performance is not an indication of future performance. This information was prepared in good faith and to the extent permitted by law BetaShares accepts no liability for any errors or omissions or loss from reliance on any of it.

# # #

BetaShares is a specialist provider of ETFs dedicated to delivering products that meet specific investor needs.