BetaShares' OOO.AX is a sophisticated Exchange Traded Fund (ETF) designed to replicate the returns of an index that offers investment exposure to the West Texas Intermediate (WTI) crude oil futures market. A crucial element of this ETF is its integrated currency hedge, specifically engineered to mitigate the effect of fluctuations between the Australian Dollar and the US Dollar on its overall performance. It is important for investors to understand that OOO tracks the prices of crude oil futures contracts, rather than the immediate, "spot" market price of oil itself. As a result, the fund's investment performance may significantly differ from the direct price movements of physical crude oil. This distinction largely arises from the continuous process of "rolling" futures contracts—that is, selling expiring contracts and acquiring new ones to maintain consistent market exposure. This rolling mechanism can introduce either a drag or a boost to the fund's returns, directly impacting its profitability. The term "futures curve" describes the pricing structure of futures contracts across various maturities. Should later-dated futures contracts be priced higher than those maturing sooner (a scenario known as 'contango'), the rolling process typically leads to a reduction in the fund's returns. Conversely, if later contracts are cheaper ('backwardation'), rolling can positively influence returns, assuming the underlying spot price of oil remains stable. For a comprehensive understanding, please consult the Product Disclosure Statement (PDS) or an insightful post related to this issue, accessible via a provided link. The Resources section also offers a link to the WTI Crude Oil futures curve, which visually demonstrates these pricing dynamics.

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BetaShares Crude Oil Index ETF-Currency Hedged (Synthetic)

BetaShares Crude Oil Index ETF - Currency Hedged (Synthetic) is an exchange traded fund launched and managed by BetaShares Capital Limited. The fund invests in the commodity markets. It uses derivatives such as swaps to invest in crude oil, the returns being hedged to Australian Dollar. The fund seeks to replicate the performance of the S&P GSCI Crude Oil Index Excess Return (hedged into Australian Dollars), by employing synthetic replication methodology. BetaShares Crude Oil Index ETF - Currency Hedged (Synthetic) was formed on November 8, 2011 and is domiciled in Australia.

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