Our Wealth Builder range
Geared exposure to global shares
Wealth Builder Global Shares Geared (30-40% LVR) Complex ETF
GGBL provides moderately leveraged exposure to a diversified portfolio of developed markets equities (ex-Australia).
Geared exposure to a diversified portfolio
Wealth Builder Diversified All Growth Geared (30-40% LVR) Complex ETF
GHHF provides moderately leveraged exposure to more than 4,000 equity securities listed on Australian, global and emerging markets.
Geared exposure to the Nasdaq 100
Wealth Builder Nasdaq 100 Geared (30-40% LVR) Complex ETF
GNDQ provides moderately leveraged exposure to the returns of the Nasdaq 100.
Geared exposure to Australian equities
Wealth Builder Australia 200 Geared (30-40% LVR) Complex ETF
G200 provides moderately leveraged, diversified exposure to the Australian sharemarket.
Why invest in Wealth Builder funds?
Potential for accelerated wealth creation
The use of gearing to increase exposure is an established way to build long-term wealth. Wealth Builder funds provide moderately geared exposure to Australian and global sharemarkets.
Convenient access to low-cost funding
Wealth Builder funds borrow at institutional interest rates that are considerably lower than those typically available to individual investors. There are no loan applications, no credit checks and no possibility of margin calls for investors.
Broad range of exposures
With four Wealth Builder funds, you can choose from a broad range of Australian, US and global developed and emerging sharemarkets.
Frequently Asked Questions
- 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 considered for various strategies, including as a way to increase exposure to the Australian or global sharemarkets for SMSFs that have reached their concessional contribution cap.
The Australian Securities Exchange (ASX) requires all ETFs and other exchange traded products to comply with naming conventions. Given the wide range of funds now available on the ASX, the 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.
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.
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 very 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, GGBL and GNDQ) currency risk.
