Betashares BBOZ ETF (ASX:BBOZ)
The BetaShares BBOZ Fund is designed to provide protection from a declining Australian equity market. When the S&P/ASX 200 Accumulation Index falls, BBOZ aims to generate magnified returns for investors.
What does the BBOZ invest in?
The BetaShares BBOZ Fund invests in equity index futures contracts to generate unleveraged returns that are negatively correlated S&P/ASX 200 Accumulation Index. In other words, when the ASX 200 rises, BBOZ should fall. When the ASX 200 falls, BBOZ should rise. We believe BBOZ is a high risk ETF to own in a portfolio, and it is expected to perform poorly over long periods of time.
What do investors use BBOZ for?
The BetaShares BBOZ Fund could be used by experienced investors to hedge their portfolio against market declines, effectively betting against the Australian stock market. This is a high risk strategy as gains and losses are magnified, compared to a simple ETF tracking the ASX 200 Index. BBOZ is a highly volatile Fund, and there is no guarantee the ETF will provide effective or perfect protection in a falling market.
Best ETFs warnings
The following warnings are applied by our team, based on quantitative metrics and our internal methodology. These risks are not exhaustive and therefore they should not be relied upon. Always read the PDS of the function and speak to your financial adviser before acting on this information.
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