Wealth builder
| Fund name | ||||||
|---|---|---|---|---|---|---|
| G200 | Betashares Wealth Builder Australia 200 Geared (30-40% LVR) Complex ETF | 9.6% | – | – | – | 0.35% |
| GHHF | Betashares Wealth Builder Diversified All Growth Geared (30-40% LVR) Complex ETF | 10.2% | – | – | – | 0.35% |
| GNDQ | Wealth Builder Nasdaq 100 Geared (30-40% LVR) Complex ETF | 11.1% | – | – | – | 0.50% |
Potential for accelerated wealth creation
Wealth builder funds seek to provide a way to build long-term wealth through the use of moderate levels of gearing.
Convenient access to low-cost funding
No loan applications, no credit checks and no possibility of margin calls as the gearing is managed internally within each fund.
Broad range of exposures
With three Wealth Builder funds, you can choose from a broad range of local Australian, US and diversified global (developed and emerging) share markets.
How to use Betashares Wealth Builder Funds
- May suit investors seeking to build long-term wealth who are comfortable taking on the increased risk of gearing
- Can be used in combination with dollar cost averaging (DCA) as a strategy to potentially accelerate long-term wealth creation
- May be a convenient way for SMSFs that have reached the concessional contribution cap to increase their exposure to the Australian or global sharemarket.
Why are our Wealth Builder Funds called ‘Complex ETFs’?
Effective from 15 April 2024, the Australian Securities Exchange (ASX) requires all new ETFs and other exchange traded products to comply with updated naming conventions. Given the wide range of funds now available on the ASX, the new rules are designed to help investors better understand the nature of different products.
To distinguish them from ETFs that aim to track an index, funds that use strategies such as gearing must now include the term ‘Complex’ in their name. Existing funds have until April 2025 to comply, so in the coming months investors can expect to see more funds (including geared funds) from a range of issuers incorporating ‘Complex’ in their fund name.
Investing involves risk. The value of an investment and income distributions can go down as well as up. Funds that use gearing magnify both gains and losses and may not be suitable for all investors. Before making an investment decision you should consider the relevant product disclosure statement (available at www.betashares.com.au) and your particular circumstances, including your tolerance for risk, and obtain financial advice. An investment in any Fund should only be considered as a component of a broader portfolio.
The gearing ratio of each Wealth Builder ETF (being the total amount borrowed expressed as a percentage of the total assets of the Fund) will generally vary between 30% and 40% on a given day. This means that each Fund’s geared exposure is anticipated to vary between ~143% and ~167% of the Fund’s Net Asset Value on a given day. Each Fund’s portfolio exposure is actively monitored and adjusted to stay within this range.
Each Fund’s returns will not necessarily be in this range over periods longer than a day, primarily due to the effects of rebalancing to maintain the Fund’s daily target geared exposure range and the compounding of investment returns over time, and the impact of fees and costs.
There are risks associated with an investment in each Fund, including market risk, underlying ETF risk, gearing risk, rebalancing and compounding risk and lender risk, as well as (for GHHF and GNDQ) currency risk. This effect on returns over time can be expected to be more pronounced the more volatile the relevant sharemarket or portfolio and the longer an investor’s holding period.
Due to the effects of rebalancing and compounding of investment returns over time, investors should not expect each Fund’s Net Asset Value to be at a particular level for a given value of the relevant sharemarket or portfolio at any point in time.
Investors should monitor their investment regularly to ensure it continues to meet their investment objectives.
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. An investment in each Fund is high risk in nature.
