Betashares Geared Long Australian Government Bond Complex ETF

The Betashares Geared Long Australian Government Bond Complex ETF (GGAB) is designed to provide investors with a leveraged exposure to Australian government bonds. This means the ETF uses borrowed money to amplify potential returns from investing in these bonds, aiming to enhance gains when bond prices rise. However, this strategy also increases the risk of greater losses if bond prices fall. With a management fee of 0.99%, GGAB is suitable for investors who are comfortable with higher risk and are seeking to potentially boost their returns through leveraged exposure to government bonds.

GGAB primarily invests in 10-year Australian Treasury Bonds, which are considered low-risk government securities. These bonds are issued by the Australian government and typically carry high credit quality. The ETF's structure involves using derivatives to achieve leverage, thereby amplifying potential returns. This means that a relatively small movement in bond prices can lead to a more significant impact on the ETF's value. The duration profile is typically aligned with long-term bonds, catering to investors seeking income and price appreciation in a low-interest-rate environment.