Betashares Geared US Equities Currency Hedged Complex ETF

The Betashares Geared US Equities Currency Hedged Complex ETF (GGUS) is designed to provide investors with amplified exposure to US shares while protecting against currency fluctuations between the Australian dollar and the US dollar. This ETF uses a strategy called "gearing," which means it borrows money to invest more than the cash you put in, aiming to enhance potential returns. However, this also increases the risk and potential losses. By hedging currency, it aims to neutralise the impact of exchange rate movements on your investment returns. GGUS is suitable for investors looking for high-risk, high-reward opportunities in the US stock market, with the added benefit of currency protection.

GGUS primarily invests in a diversified portfolio of US equities, specifically targeting large-cap companies represented in the S&P 500 Index. The ETF utilises derivatives to achieve its geared exposure, allowing it to magnify the returns of the underlying equities. By hedging currency risk, it ensures that fluctuations between the Australian dollar and the US dollar do not adversely impact its performance. This structure is particularly beneficial for investors seeking to capitalise on the growth potential of the US market while managing currency volatility.