Introducing the Betashares Wealth Builder Funds

Gearing into sharemarket investments is an established way by which investors can seek to build long-term wealth. We are excited to announce the upcoming launch* of two Wealth Builder Funds that will offer a convenient, cost-effective way to gain moderately leveraged exposure to the Australian and global sharemarkets for investors comfortable with the risks associated with gearing.

Betashares Wealth Builder Australia 200 Geared (30-40% LVR) Complex ETF

(G200) provides moderately geared exposure to the returns of the broad Australian sharemarket.

Betashares Wealth Builder Diversified All Growth Geared (30-40% LVR) Complex ETF (GHHF) provides moderately geared exposure to a diversified portfolio of Australian and global equities.

Investing in our Wealth Builder Funds requires no loan applications, no credit checks and no possibility of margin calls as the gearing is managed internally within each fund.

*Subject to final regulatory approval.

G200 fund benefits

Potential for accelerated wealth creation

For investors with a view that the Australian sharemarket will appreciate over time, G200 seeks to provide a way to build long-term wealth through the use of moderate levels of gearing.

Convenient access to low-cost funding

G200 borrows at institutional interest rates that are considerably lower than those typically available to individual investors.

Potential for enhanced franking credits

An investor in G200 may be entitled to more franking credits than if they had invested in an equivalent ungeared portfolio.1

1. Not all Australian investors will be able to receive the full value of franking credits.

GHHF fund benefits

Potential for accelerated wealth creation

For investors with a view that the Australian and global sharemarkets will appreciate over time, GHHF seeks to provide a way to build long-term wealth through the use of moderate levels of gearing.

Convenient access to low-cost funding

GHHF borrows at institutional interest rates that are considerably lower than those typically available to individual investors.

Diversified exposure

GHHF provides exposure to more than 4,000 equity securities listed on Australian, global developed and emerging markets.

How to use Betashares Wealth Builder Funds

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.

The gearing ratio (being the total amount borrowed expressed as a percentage of the total assets of each Fund) will generally vary between 30% and 40% on a given day. Each Fund’s gearing ratio is actively monitored and adjusted to stay within this range. This means that the 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 returns will not necessarily be in this range over periods longer than a day, primarily due to the effects of rebalancing to maintain the daily target geared exposure range and the compounding of investment returns over time, as well as the impact of fees and costs.

Gearing magnifies gains and losses and may not be a suitable strategy for all investors. Geared investments involve significantly higher risk than non-geared investments. An investment in the Fund is high risk in nature.

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) asset allocation risk and currency risk. Investment value can go up and down. An investment in each 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 each Fund, please see the applicable Product Disclosure Statement and Target Market Determination (once available), on this website.

Register to be notified when G200 & GHHF launch

About Betashares

$ 37 B+ AUM

95 + Funds across Australia & NZ

1 M+ Investors

2009 Founded