1-Star ETFs Poised to Plunge: CurrencyShares Australian Dollar Trust?


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, CurrencyShares Australian Dollar Trust has received the dreaded one-star ranking.

With that in mind, let's take a closer look at FXA and see what CAPS investors are saying about the ETF right now.

FXA facts


June 2006

Total Net Assets

$665.1 million

Investment Approach

Seeks to track the price of the Australian dollar, net of trust expenses.

Expense Ratio


1-Year / 3-Year / 5-Year Returns

5.6% / 8% / 7.1%


iShares MSCI Australia Index
iPath Dow Jones-UBS Commodity Index

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 35% of the 43 All-Star members who have rated FXA believe the ETF will underperform the S&P 500 going forward.

Just last month, one of those bears, Foolish colleague Andy Cross (TMFOpie), followed the lead of Wall Street smart-money and planted a red thumb on FXA:

I don't typically, if ever, invest over short-term time horizons and not much shorting. But I read about [Goldman Sachs' ] favorite trade idea for 2013 being short the AU dollar (and long Norwegian Krone). This is not any kind of recommendation though, more of something fun to watch and trade.

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The article 1-Star ETFs Poised to Plunge: CurrencyShares Australian Dollar Trust? originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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