Betashares expands Wealth Builder range with moderately geared Global Shares ETF
Alex Vynokur
Leading Australian financial services company, Betashares, has announced the expansion of its unique and innovative Wealth Builder range with the launch of the Betashares Wealth Builder Global Shares Geared (30-40% LVR) Complex ETF (ASX: GGBL) on the ASX.
The new fund provides moderately geared exposure to a well diversified underlying portfolio which comprises approximately 1,300 developed markets companies (ex-Australia) across more than 20 countries. The new investment solution allows investors to access the well-established benefits of gearing, which is professionally managed within a moderate gearing range of 30- 40%. GGBL builds on the success of Betashares Global Shares ETF (ASX: BGBL) – a fund that provides the same exposure on an ungeared basis, and is approaching nearly $3 billion in assets under management. GGBL combines investors’ money with borrowed funds and invests the proceeds in BGBL.
GGBL has been designed to provide investors with access to the potential for accelerated wealth creation leveraging the long-term growth prospects of global sharemarkets. The fund borrows at institutional rates which are considerably lower than those typically available to individual investors, providing convenient access to low-cost funding without loan applications, credit checks or investors having to rebalance their portfolio due to the effects of gearing. The new fund also benefits from a competitive management fee structure of 0.35% per annum of the Fund’s Gross Asset Value.
The fund is internally geared, meaning investors’ risk is limited to their capital invested, with no margin calls for investors. The fund’s gearing ratio, being the total amount borrowed expressed as a percentage of the fund’s assets, is expected to be maintained between 30% and 40% on a given day. This means that for every $1 invested, the fund aims to provide approximately $1.43 to $1.67 exposure to global shares on a given day.
The fund is the fourth in Betashares’ innovative Wealth Builder range, which allows investors to build long term wealth by harnessing the power of gearing. The existing three funds have grown to nearly $200 million in funds under management, as investors have recognised their potential in a portfolio.
Announcing the launch of the new fund, Betashares CEO, Mr Alex Vynokur, said he was excited by the expansion of the Wealth Builder range and the already significant uptake from investors.
“We’re proud to expand the number 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,” Mr Vynokur said.
“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,” Mr Vynokur concluded.
The Betashares Wealth Builder Global Shares Geared (30-40% LVR) Complex ETF (ASX: GGBL) is available now on the ASX.
