ETF full name: ProShares UltraShort Australian Dollar CROC
ETF provider: ProShares
|CROC key details|
|Inception date||July 19, 2012|
|Average 3-5 EPS||N/A|
|Average Annualized Return||-19.01%|
|Investment objective||Exposure to the AUD/USD cross|
|Investment geography||Leveraged currencies|
|Median market capitalization||N/A|
|Number of holdings||1|
|Weighting methodology||Single asset|
About the CROC ETF
ProShares UltraShort Australian Dollar CROC ETF began in July 2012. It aims to provide the investors with a chance to bet on prospects of the Australian dollar growing weaker than the United States dollar.
CROC Fact-set analytics insight
CROC ETF is a single asset fund, which means that it consists of no holdings, apart from the AUD/USD cross rate. It uses the double inverse daily leverage to multiply gains against the Australian currency achieved in a single trading session.
Due to the inverse nature of the fund’s leverage, it is crucial for the traders who decide to invest in the fund to allocate enough time to rebalance their portfolio daily. As a result, the accumulation of gains in multiple sessions will, as a rule, not amount to the target multiple.
The CROC exchange fund uses single asset tracking for its methodology.
CROC performance analysis
In the light of our current circumstances, the AUD/USD pair can be a counterweight to the USD/JPY. However, most of the Aussie’s strength comes from trading in commodities, which plunged after the pandemic emerged in China.
With Beijing being one of the significant customers of Australia’s coal, iron ore, and copper, anything that may disrupt the business environment in the Asian country has an almost direct carry-over effect on the rate. With that in mind, it is essential to note that tensions between the US and China also reflect the rate’s performance.
With the economy reopening, the Aussie improved versus the US dollar, which we can see as a downward trend of the CROC ETF.
CROC ETF RATING
|CROC Rating||A+||5 out of 5||Quintile 3 (49th percentile)||N/A||N/A|
|CROC ESG Rating||N/A||N/A||N/A||N/A||N/A|
CROC key holdings
Accumulated returns from similar funds with considerable or inverse leverage can vastly differ from the fund’s daily returns, as daily returns started on the ETF issuer’s prospectus.
Given its nature and the multitude of factors that need consideration, the CROC ETF is not for investors looking for a long-term balanced portfolio. However, the investors who decide to give betting against the Aussie a chance should check their holdings at least daily, if not more often.
Since Australia is the world’s largest exporter of coal and iron ore, any slump in commodity trading will heavily affect the AUD/USD rate. For example, the Aussie went far down in the 2015 commodity crash versus the greenback by 15%, which happened half a century ago.
When looking for hints as to where the cross rate will go, checking the industry trends will do traders a lot of good. The same goes for the relations between Australia and China, with more and more Canberra officials criticizing the Beijing regime in the Taiwan dispute.
Last but not least, if you are looking to give the CROC ETF a try, make sure to have an ear out to what the Reserve Bank of Australia and the US Federal Reserve are saying as both central banks serve as stewards of their national currencies.