Betashares Geared Australian Equities Complex ETF

The Betashares Geared Australian Equities Complex ETF (GEAR) is designed to provide investors with a magnified exposure to a diversified portfolio of Australian shares. This ETF uses a strategy called "gearing," which means it borrows money to invest more than the cash you put in, aiming to amplify potential returns. However, this also increases the risk, as losses can be magnified in the same way. With a management fee of 0.78%, GEAR is suited for investors who are comfortable with higher risk and are looking to potentially enhance their returns by investing in the Australian stock market with leverage.

GEAR primarily invests in a diversified portfolio of Australian equities, focusing on large-cap companies listed on the ASX. The ETF employs derivatives to achieve its leveraged exposure, meaning it borrows funds to increase the amount invested in equities. This structure allows GEAR to magnify both potential gains and losses. The underlying holdings encompass various sectors, reflecting the broader Australian economy, which may include financials, materials, and healthcare companies. The use of derivatives means that GEAR's performance is directly tied to the price movements of these equities, providing investors with a way to amplify their exposure to the Australian share market.