Betashares has announced the launch of GNDQ, providing investors with a moderately geared exposure to the Nasdaq 100 Index.
According to the ETF provider, GNDQ builds on the success of Betashares’ flagship Nasdaq 100 ETF (ASX: NDQ), which has grown to hold over $5 billion in assets since inception.
The launch marks the latest product in Betashares’ broader Wealth Builder range, which seeks to make a moderate form of gearing more accessible and cost effective for Australian investors.
Other funds in the range include G200, offering geared exposure to Australian shares, and GHHF, which provides access to both Australian and international equities.
“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,” Betashares chief executive Alex Vynokur said on the launch.
“By adopting a moderately geared investment strategy, GNDQ further expands the options available to investors to enhance long-term wealth creation,” Vynokur said.
The firm explained that gearing, as a traditionally complex strategy, is made simpler through Betashares’ Wealth Builder range.
Namely, investment solutions handle borrowing arrangements directly, thereby limiting investor risk to the capital invested and eliminating the risk of margin calls, according to Betashares.
It also confirmed that GNDQ’s gearing ratio will generally vary between 30 per cent and 40 per cent on a given day.
“Our Wealth Builder range is designed to provide investors with the opportunity to build wealth over the long term by offering cost effective and convenient access to gearing,” Vynokur said.
“GNDQ allows Australians to invest in world-leading companies in the Nasdaq 100 through a professionally managed geared exchange-traded fund.”
Betashares first revealed its Wealth Builder range in April, when it said the suite would comprise two “moderately geared” ETFs.
At the time, the fund manager said these would mark Australia’s first such geared ETFs on the ASX.
“Utilising gearing is a well-established approach to building long-term wealth, but it has traditionally been expensive to access or used in funds that are only suitable for investors with a tolerance for higher gearing levels,” Vynokur said earlier this year.
“The Wealth Builder series has been designed for investors who are comfortable with leverage but are seeking a more moderate level of gearing better suited to a ‘buy and hold’ investment strategy as part of their wealth accumulation goals.”
