Geared U.S. Equity Fund – Currency Hedged (hedge fund)
- International shares
Geared exposure to the US sharemarket
Overview
Fund objective
GGUS provides investors with cost-effective geared exposure to the returns of the broad US sharemarket, hedged for currency exposure.
Fund strategy
GGUS is ‘internally geared’, meaning all gearing obligations are met by the Fund. GGUS combines funds received from investors with borrowed funds and invests the proceeds in a broadly diversified share portfolio consisting of the largest 500 shares listed in the US by market capitalisation (as measured by the S&P 500 Index). The Fund’s gearing ratio (being the total amount borrowed expressed as a percentage of the total assets of the Fund) is managed between 50-65% on any given day.
The gearing ratio will generally vary between 50% and 65% on a given day. This means that the Fund’s geared exposure is anticipated to vary between 200% and 286% of the Fund’s Net Asset Value on a given day. The Fund’s portfolio exposure is actively monitored and adjusted to stay within this range. The Fund’s returns will not necessarily be in this range over periods longer than a day, due to the effects of rebalancing to maintain the Fund’s daily target geared exposure range and compounding of investment returns over time. The Fund’s returns over periods longer than one day may differ in amount and possibly direction from the daily target geared return range. This effect on returns over time can be expected to be more pronounced the more volatile the broad US sharemarket 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 the Fund’s Net Asset Value to be at a particular level for a given value of the broad US sharemarket at any point in time.
Investors should actively monitor their investment as frequently as daily 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 the Fund is very high risk in nature.
Benefits of GGUS
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Leveraged returns
GGUS gives you the opportunity to make magnified gains when the US sharemarket rises on a given day, and magnified losses when the US sharemarket falls.
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Simple to access, convenient
Avoid the costs and complications of margin loans and CFDs. No need to borrow funds, no credit assessment, and diversified exposure in a single ASX trade.
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No margin calls
Investors in GGUS do not face the possibility of margin calls.
There are risks associated with an investment in GGUS, including market risk, gearing risk and lender risk. Investment value can go up and down. An investment in the Fund should only be considered as a part of a broader portfolio, taking into account your particular circumstances, including your tolerance for risk. For more information on risks and other features of the Fund, please see the Product Disclosure Statement and Target Market Determination, both available on this website.
How to Invest
- You can buy or sell units just like you’d buy or sell any share on the ASX.
- Fund requires no minimum investment.
Key facts
Pricing information
| Current price | |
|---|---|
| Last trade* | |
| % Change (prev day) | |
| Bid (delayed) | |
| Offer (delayed) | |
* Data is delayed by at least 20 minutes.
| NAV | |
|---|---|
| NAV/Unit* | $27.81 |
* As at 7 December 2023
Profile
| Net assets* ($A) | $178,895,445 |
|---|---|
| Units outstanding* (#) | 6,431,869 |
| Management fee and cost** (p.a.) | 0.8% |
| Distribution frequency | Annual |
| Distribution reinvestment plan (DRP) | Full or partial participation available |
| Issuer | Betashares Capital Ltd |
| Registry | Link Market Services |
* As at 7 December 2023
**Costs expressed as a percentage of gross asset value of the Fund. Certain additional costs apply. Please refer to PDS.Trading information
| ASX code | GGUS |
|---|---|
| Bloomberg code | GGUS AU |
| IRESS code | GGUS.AXW |
| iNAV IRESS code | N/A |
| Market makers | Susquehanna Pacific |
Index information
| Index | N/A |
|---|---|
| Index provider | N/A |
| Index ticker | N/A |
| Bloomberg index ticker | N/A |
Gearing
| Gearing range | 50-65% |
|---|---|
| Current gearing ratio* (%) | 57.0% |
| Current gearing multiple** (x) | 2.33 |
* As at 8 December 2023. Calculated as Fund borrowings divided by Fund total assets. Current Gearing Ratio is as at start of the above date and can be expected to vary throughout the day.
**Represents the Fund's approximate exposure, for the above date, to movements in the U.S. share market (as measured by the S&P 500 Index). For example, if the Fund's gearing multiple is 2.1x, and the S&P 500 Index goes up 1% that day, the Fund would be expected to go up approximately 2.1% that day, before fees and expenses. The Fund is actively managed and the gearing multiple will change on a daily basis, affecting returns over time.
Holdings & allocation
Sector allocation
| Information Technology | 28.0% |
|---|---|
| Health Care | 13.1% |
| Financials | 12.7% |
| Consumer Discretionary | 10.5% |
| Communication Services | 8.7% |
| Industrials | 8.3% |
| Consumer Staples | 6.6% |
| Energy | 4.5% |
| Utilities | 2.5% |
| Other | 5.0% |
* As of 31 October 2023
Performance
Fund returns after fees (%)
| Fund | S&P 500 Index (TR, US$) | |
|---|---|---|
| 1 month | 23.07% | 9.07% |
| 3 months | 0.26% | 1.62% |
| 6 months | 16.73% | 9.90% |
| 1 year | 19.08% | 13.27% |
| 3 year p.a. | 8.72% | 9.24% |
| 5 year p.a. | 13.70% | 11.94% |
| 10 year p.a. | - | - |
| Since inception (p.a.) | 14.62% | 11.24% |
| Inception date | 17-Aug-15 | - |
* As at 30 November 2023.
Past performance is not an indicator of future performance. Returns are calculated in Australian dollars using net asset value per unit at the start and end of the specified period and do not reflect brokerage or the bid ask spread that investors incur when buying and selling units on the ASX. Returns are after fund management costs, assume reinvestment of any distributions and do not take into account tax paid as an investor in the Fund. Returns for periods longer than one year are annualised. Current performance may be higher or lower than the performance shown.
Chart
Past performance is not indicative of future performance. Please refer to "Fund returns after fees" for additional information regarding performance/return information.
Distributions
Yield information
| Distribution frequency | Annual |
|---|---|
| 12 mth distribution yield* | - |
*As at 31 October 2023. Yield is calculated by summing the prior 12-month per unit distributions divided by the closing NAV per unit at the end of the relevant period. Yield will vary and may be lower at time of investment. Past performance is not indicative of future performance.
Recent distributions
| Ex Date | Record Date | Payment Date | Distribution Unit ($) | Annual Distribution Return (%) (1) |
|---|---|---|---|---|
| 1-Jul-22 | 4-Jul-22 | 18-Jul-22 | $1.242861 | 3.85% |
| 1-Jul-21 | 2-Jul-21 | 16-Jul-21 | $1.025367 | 4.67% |
| 1-Jul-19 | 2-Jul-19 | 16-Jul-19 | $0.025411 | 0.16% |
| 2-Jul-18 | 3-Jul-18 | 17-Jul-18 | $0.120121 | 0.94% |
| 3-Jul-17 | 4-Jul-17 | 18-Jul-17 | $0.09916 | 1.05% |
| 1-Jul-16 | 4-Jul-16 | 18-Jul-16 | $0.098482 | - |
1 This is the annual distribution return to the end of the relevant distribution date. The distribution return reflects the contribution to total investment return made by the Fund's distributions. Distribution return is calculated as the total return less the growth return. Total return is calculated as the percentage change in a continuing investor's interest in the Fund assuming reinvestment of all distributions back into the Fund (and no other application or withdrawal), net of ongoing fees. Growth return is the Fund's return excluding distributions, net of ongoing fees. Past performance is not indicative of future performance