Utilise leverage in your portfolio

Gearing is an investment strategy whereby borrowed money is used to invest, along with an investor’s own capital. For some Funds, gearing is achieved through the use of futures. Investing with gearing makes the amount available for investing larger, which means that should the investment increase in value, the gains on the investment in a geared investment will be magnified compared to a non-geared strategy. Conversely, should an investment decrease in value, the losses on the investment in a geared investment will also be magnified compared to a non-geared strategy.

For investors who are comfortable with leverage, investing with gearing can be a very capital-efficient way to obtain the required exposure.

BetaShares has a broad range of geared investment products offering exposure to both bullish (or “long”), and bearish (or “short”), investment strategies. These exposures are offered over a range of asset classes, including Australian and global shares, as well as currencies.

BetaShares Geared Funds offer a number of benefits over other leveraged investments:

Ease of Access

All BetaShares Geared Funds are bought and sold on the ASX like any share, meaning there is no need for any loan agreements as for margin loans or any additional paperwork beyond normal share investing.

No margin calls for investors

As all gearing obligations are met by the BetaShares Geared Funds, investors in these funds are not exposed to the risk of any potential margin calls, with downside risk being limited to the amount originally invested, unlike margin loans or CFDs.

Cost-effective

BetaShares implements its gearing strategy by the use of institutionally priced loans, which are priced at substantial discounts to those available to most investors, or via the use of futures, which are a very capital efficient way to obtain geared exposure.

SMSF eligible

All BetaShares Geared Funds are SMSF eligible and have proven popular with investors as a means to access gearing in SMSFs/super as a component of a diversified portfolio.

Transparency

The daily gearing ratio or portfolio exposure of each of the BetaShares Geared Funds is available on the relevant fund page on the website and updated daily.

Our Geared Fund Range

Bullish Australian Shares

ASX Code Description
GEAR Geared Australian Equity Fund (hedge fund) – cost-effective geared exposure to the returns of the Australian sharemarket

Bullish U.S. Shares

ASX Code Description
GGUS Geared U.S. Equity Fund - Currency Hedged (hedge fund) cost-effective geared exposure to the returns of the U.S. sharemarket

Bearish Australian Shares

ASX Code Description
BBOZ Australian Equities Strong Bear Hedge Fund - seeks to generate magnified returns that are negatively correlated to the returns of the Australian sharemarket

Bearish U.S. Shares

ASX Code Description
BBUS US. Equities Strong Bear Hedge Fund - seeks to generate magnified returns that are negatively correlated to the returns of the U.S. sharemarket

Currency

ASX Code Description
AUDS Strong Australian Dollar Fund (hedge fund) – geared exposure to the change in value of the Australian Dollar relative to the U.S. Dollar
YANK Strong U.S. Dollar Fund (hedge fund) – geared exposure to the change in value of the U.S. Dollar relative to the Australian Dollar

Important note: Gearing magnifies gains and losses and may not be a suitable strategy for all investors. Investors in geared strategies should be willing to accept higher levels of investment volatility and potentially large moves (both up and down) in the value of their investment. Geared investments involve significantly higher risk than non-geared investments and investors should seek professional financial advice before investing, and monitor their investment actively. Note that the Geared Funds do not track a published benchmark and past performance is not an indication of future performance.