Betashares US Equities Strong Bear Currency Hedged Complex ETF

The Betashares US Equities Strong Bear Currency Hedged Complex ETF (BBUS) is designed for investors who want to profit from a decline in the US share market. This ETF uses a strategy that aims to provide a return that is negatively correlated to the daily performance of the US stock market, meaning it seeks to go up when the US market goes down. Additionally, it is currency hedged, which means it aims to protect against changes in the Australian dollar and US dollar exchange rate, ensuring that currency fluctuations do not impact the returns. This makes BBUS a tool for investors looking to hedge against or speculate on a downturn in US equities.

BBUS predominantly invests in U.S. equities, utilising a derivatives-based structure to provide investors with a leveraged inverse exposure to the performance of the S&P 500 Index. This means that as the index declines, the value of the ETF may increase, providing an opportunity for profit during bearish market conditions. The ETF specifically targets large-cap companies, which often represent the majority of the index’s value. This focus allows BBUS to reflect the performance of leading U.S. corporations across various sectors, although it remains heavily weighted towards technology and financials, which are significant components of the S&P 500.