BetaShares launches new ETF
BetaShares has announced the launch of a global energy companies exchange-traded fund (ETF).
The ETF, which will trade under the code name ‘FUEL’, provides exposure to large companies in the global energy sector such as Exxon, Chevron, Royal Dutch Shell, BP and Total.
The fund is hedged to the Australian dollar and is the first fund launch from BetaShares’ ‘Global Sector’ series, which is a collection of ETFs intended to provide investors with exposure to international sectors.
“According to the BetaShares/Investment Trends ETF Report 2015, access to overseas markets is the second most important reason individual investors seek out ETFs, after diversification domestically,” said BetaShares managing director Alex Vynokur.
“The oil industry has been experiencing one of the deepest downturns in recent times. FUEL invests in the strongest global players in the energy sector, which may provide Australian investors with an opportunity to diversify their portfolios and benefit from an eventual recovery.”