What does Betashares Crude Oil Index ETF-Currency Hedged do?
The Betashares Crude Oil Index ETF-Currency Hedged (ASX:OOO) is an exchange-traded fund (ETF) that tracks the price of crude oil, with the currency hedged to the Australian dollar (AUD). This means that the ETF aims to provide investors with exposure to the price of crude oil, without having to worry about currency fluctuations between the AUD and the US dollar (USD). The OOO ETF invests in a basket of futures contracts on West Texas Intermediate (WTI) crude oil. WTI is a benchmark crude oil that is traded on the New York Mercantile Exchange (NYMEX). The OOO ETF uses a synthetic hedging strategy to hedge against currency fluctuations. This means that the ETF does not directly invest in currency futures contracts. Instead, it uses a combination of financial instruments to achieve the same hedging effect.