CROCProShares UltraShort Australian Dollar
CROC Fund Description
CROC uses futures contracts to provide (-2x) leveraged inverse exposure to the US dollar price of the Australian dollar.
CROC Factset Analytics Insight
For those traders wishing to make a short bet on the Aussie dollar, CROC offers -2x exposure to the USD/AUD cross. Although it may seem expensive at 102 bps, the fund isn’t designed to be a long-term investment; rather, CROC is a short-term trading vehicle that’s rebalanced daily. As a result, the fund’s long-term returns are difficult to predict due to issues of path dependency and compounding. Also, keep in mind that CROC references the USD/AUD cross as cited by Bloomberg at 4 pm ET—a value that may differ from other quoting sources. Also note that CROC holds futures contracts, and as a result, releases a K-1 during tax time. With thin assets, it’s tough to call CROC an investor favorite. Its volume is also less than we’d like to see, while wide average bid/ask spreads make for a costly entry and exit.
CROC CHARTS AND PERFORMANCE
CROC Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of CROC. CROC is rated a 5 out of 5.