Betashares has launched a geared global exchange traded fund (ETF) providing access to 1300 companies across 20 countries, excluding Australia, incorporating a loan to value ratio (LVR) of between 30 to 40 per cent.
The fund is called the Betashares Wealth Builder Global Shares Geared (30-40% LVR) Complex ETF and is trading under the Australian Securities Exchange (ASX) ticker GGBL.
The offering is the fourth in the manager’s Wealth Builder range and is a modified version of the Betashares Global Shares ETF (ASX: BGBL) with the gearing feature being the only difference.
The first funds in the range were launched in April 2024 and the existing three funds – the Betashares Wealth Builder Australia 200 Geared (30-40% LVR) Complex ETF, the Betashares Wealth Builder Diversified All Growth Geared (30-40%LVR) Complex ETF, and the Wealth Builder Nasdaq 100 Geared (30-40% LVR) Complex ETF – already have $200 million in funds under management.
“We’re proud to expand the number of options within our unique Wealth Builder range, offering Australian investors robust building blocks to construct their portfolios. To that end, GGBL provides convenient, moderately geared exposure to a portfolio of global shares, designed for investors seeking to accelerate their long-term wealth creation as part of a well-diversified portfolio,” Betashares chief executive Alex Vynokur explained.
Accordiing to the manager the ETF will borrow at rates that are “considerably lower than those typically available to individual investors”. It is also internally geared meaning there are no margin calls for investors and their risk is limited to what the amount they invest.
The product’s LVR of between 30 to 40 per cent will allow Betashares to provide approximately $1.43 to $1.67 exposure to global shares on a given day for every $1 dollar invested.
The ETF will charge clients a management fee of 0.35 per cent per year of the fund’s gross asset value.
We’re proud to be the only provider of moderately geared ETFs in the Australian market. Our Wealth Builder range is particularly well suited to accumulators with a long investment horizon and who are comfortable with the higher levels of volatility associated with gearing,” Vynokur concluded.
