BetaShares launches new product
Exchange Traded Fund (ETF) specialist, BetaShares, has announced the launch of a new product on the Australian Securities Exchange (ASX).
The company announced the launch of the BetaShares Australian Equities Strong Bear Hedge Fund which it said aimed to help investors profit from, or protect against, a declining Australian share market by generating magnified returns that are negatively correlated to the returns of the Australian share market.
It said the fund would invest its assets into cash and sell equity index futures contracts (ASX SPI 200 futures), which could be expected to generate a positive return when the S&P/ASX200 index declines and vice versa.
It said the fund's short exposure to the S&P/ASX200 index would generally vary between 200 per cent and 275 per cent of the Fund's total assets, and would be actively monitored and adjusted to stay within this range.
Commenting on the product launch, BetaShares managing director, Alex Vynokur said that the newly launched BBOZ, together with the popular BetaShares Australian Equities Bear Hedge Fund might prove a useful tool for investors and investment advisors looking to protect their portfolios from a downturn in the Australian market.
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