Betashares has expanded its range of exchange-traded funds (ETF) with the launch of two new offerings on the Australian Securities Exchange (ASX).
The latest addition, the Betashares Wealth Builder Nasdaq 100 Geared (30-40% LVR) Complex ETF (ASX: GNDQ), uses a combination of investors’ money and borrowed funds to invest in the Betashares Nasdaq 100 ETF. This ETF tracks the performance of the 100 largest non-financial companies listed on the Nasdaq.
The ETF manager said GNDQ is part of its Wealth Builder range, designed to provide investors with geared exposure to both Australian and international indices, and carries a management fee of 50 basis points.
As the name implies, GNDQ employs a gearing ratio of between 30 per cent and 40 per cent, which is managed within the fund, meaning investors’ risk is limited to their initial investment with no margin calls.
Betashares chief executive Alex Vyonkur said: “We are pleased to expand our Wealth Builder range with the launch of GNDQ, giving investors a valuable portfolio option to access the growth potential of the Nasdaq 100 via a moderately geared investment strategy.
“By adopting a moderately geared investment strategy, GNDQ further expands the options available to investors to enhance long-term wealth creation.”
In addition to GNDQ, the firm has also launched its Global Defence ETF (ASX: ARMR), which focuses on companies based in North Atlantic Treaty Organization (NATO) countries and allied nations, including major defence contractors such as Lockheed Martin and BAE Systems.
Betashares noted ARMR was launched in response to rising global defence spending, which reached a record US$2.4 trillion in 2023. The ETF aims to capture this growth through a portfolio of up to 60 companies involved in defence and carries a management fee of 55 basis points.
“Due to the shifting geopolitical landscape, NATO-aligned nations are increasing spending to levels not seen since the Cold War to enhance their defences. This underpins strong projected growth in revenue and cash flows for many companies in the ARMR portfolio,” Vynokur noted.
“Moreover, additional spending on defence has historically been supportive of innovative technological developments with commercial applications.”
The addition of GNDQ and ARMR increases the total number of ETFs listed by Betashares on the ASX to 97, following the launch of a momentum-style fund in July.
