Effective access to US dollar movements
ETFS Enhanced USD Cash ETF (ASX code: ZUSD) offers exposure to the movements of the US dollar against the Australian dollar, without the need to manually trade currencies or set up foreign bank accounts.
ZUSD aims to provide investors with a return that, before fees and expenses, tracks the performance of an interest-bearing US dollar cash deposit.
ZUSD invests in US dollar bank deposits with maturities ranging from overnight to three months. This means it aims to offer performance above the rate available on overnight deposits in Australian dollar terms. Deposits are held with one or more Authorised Deposit-Taking Institutions and earn a variable rate of interest spread across a range of maturities to enhance yield, while maintaining the liquidity of the fund.
ZUSD is not currency hedged and captures movements in the Australian dollar/US dollar exchange rate by investing substantially all its assets in US denominated deposits.
Why consider ZUSD?
Diversification in the cash allocation of a portfolio away from Australian dollars.
Efficient, low-cost exposure to the US dollar, the world’s reserve currency.
The potential of a return above the rate available on overnight deposits in Australian dollar terms (though it could also be below this).
Tactical allocation to the US dollar for investors who believe the USD will appreciate against the Australian dollar
Liquid and transparent.
Does ZUSD pay distributions?
Yes, ZUSD pays distributions on a quarterly basis.
Is ZUSD currency hedged?
No, it aims to capture the movements in the Australian dollar/US dollar exchange rate by investing substantially in US denominated deposits.
What is the benchmark for ZUSD?
The benchmark is the US dollar/Australian dollar exchange rate .
How can you use ZUSD in a portfolio?
ZUSD can be used as part of the cash allocation in the defensive portion of a portfolio to offer diversification away from the Australian dollar. This allows for a buffer against weakness in the Australian dollar as well as exposure to one of the most utilised currencies in the world.
ZUSD aims to achieve an interest rate above that of the overnight rate and offers quarterly distributions, so might also be part of a yield strategy for an investor.
ZUSD can also be used as a tactical or short-term investment for investors with particular convictions on the direction of the US dollar.
Is ZUSD physically backed?
Yes. ZUSD invests in US dollars term deposits ranging from overnight to 3 months
|Date (NAV)||24 Nov 2020|
|Fund inception date||09 Jun 2015|
|Management Costs (% p.a.)||0.30|
|Maximum cost recoveries (% p.a.)||0.00|
|Legal Form||Managed Investment Scheme|
|Bloomberg Code||ZUSD AU Equity|
|Trading hours||10:00AM – 4:00PM|
|Issuer||ETFS Management (AUS) Limited|
|Custodian||Australia and New Zealand Banking Group Limited|
|Registrar||Computershare Investor Services Pty Limited|
|Announcement date||24 Jun 2020|
|Ex-date||30 Jun 2020|
|Record date||1 Jul 2020|
|Payment date||15 Jul 2020|
|Distribution per unit |
|12-month franking level||0.00%|
|Portfolio composition file - ETFS Enhanced USD Cash ETF||24 Nov 2020|
|Factsheet ZUSD||12 Nov 2020|
|Annual Financial Report - 30 June 2020||23 Sep 2020|
|Condensed Financial Report - For the half-year ended 31 December 2019||11 Mar 2020|
|Distribution Reinvestment Policy||02 Mar 2020|