BetaShares has announced the launch of the first oil exchange traded fund (ETF) on the Australian Securities Exchange – expanding the investment options available to Australian retail and institutional investors.
The ETF, which will trade under the ASX code “OOO”, aims to track the performance of the S&P GSCI Crude Oil Index.
The Index tracks the performance of West Texas Intermediate (“WTI”) crude oil futures traded on the New York Mercantile Exchange.
The ETF is currency hedged, substantially eliminating the impact of movements in the AUD/USD exchange rate to provide a purer oil exposure.
Prior to the introduction of this ETF, the only way for investors to gain access to the performance of oil was via complicated instruments such as futures or CFDs, or indirectly via shares in oil companies.
The launch of Australia’s first oil ETF is in line with the company’s goals of increasing product choice for Australian investors and delivering exposure to asset classes previously difficult to access.