BetaShares has launched a new ETF that will give investors a leveraged short exposure to the Australian stock market.
The fund has a short exposure to the S&P/ASX200 index and will vary between 200 per cent and 275 per cent of the fund’s total assets.
The Strong Bear Fund (ASX Code: BBOZ) aims to help investors profit from, or protect against, a declining Australian share market.
The ETF will invest assets into cash and sell equity index futures contracts, which can be expected to generate a positive return when the index declines, a statement issued by BetaShares said.
BetaShares managing director Alex Vynokur said that the fund is a “useful tool” for investors looking to protect their portfolios from a downturn in the market.
Mr Vynokur added that BetaShares was in the process of launching a new fund that would provide a similar exposure to the US equities market in the coming weeks.
“While Australian and global equities markets have recently enjoyed a period of strong investment performance, investors are expressing interest in exposures which help manage investment risk in the event of a downturn.
“While any use of shorting must be approached by investors with caution as a component of an investor’s overall portfolio, we believe that BBOZ will represent a useful investment tool, allowing informed investors to actually manage their Australian market exposure, without the complexity of instruments like CFDs, or the risk of margin calls,” Mr Vynokur said.
An Australian investment manager has tipped that as pandemic volatility is expected to force a 30 per cent reduction in dividends, active ma...
Morningstar analysts have forecast a “troubling” outlook for the banks ahead, expecting the rise of unemployment and business closures w...
One of the world’s largest investment banks has warned that emerging market economies have the most to lose in the outbreak. ...