Gives investors a simple and accessible way to obtain magnified ‘short’ exposure to the U.S. sharemarket.
- A 1% fall in the U.S. share market on a given day can generally be expected to deliver a 2.0% to 2.75% increase in the value of the Fund (and vice versa)
- Hedge U.S. share portfolios against falling markets via an efficient use of capital
- Can be used to seek profits when U.S. share markets decline
- No need to borrow shares or use proprietary trading platforms in order to obtain a magnified short exposure
- Alternative to CFDs
- Actively managed
NB: The Fund’s portfolio exposure is actively monitored and adjusted to stay within a -200% to -275% range on any given day. The Fund uses futures to obtain its exposure rather than the underlying securities, and as such, the Fund should not be expected to provide any particular short multiple of the market return over any time period. Investors should check the BetaShares website for details of the Fund’s historical performance, as well as the current portfolio exposure, to ensure that the Fund continues to meet their investment objectives.
Gearing magnifies gains and losses and may not be a suitable strategy for all investors.
- Access – obtain magnified returns that are negatively correlated to U.S. sharemarket as simply as buying any share
- Convenience – investors avoid complications and costs of CFDs, futures and short selling
- No margin calls for investors – cannot lose more than initial investment
- No W-8 BEN forms and no US estate tax implications for investors – simplified tax administration, unlike cross-listed alternatives
- Reduced currency risk – US dollar exposure hedged to the Australian dollar
- Liquidity – available to trade on ASX like any share
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