The BetaShares BBUS Fund is designed to provide protection from a declining US share market. When the S&P 500 Total Return Index falls, BBUS aims to generate magnified returns for investors.
The BetaShares BBUS Fund uses equity index futures contracts to generate magnified returns that are negatively correlated to the S&P 500 Total Return Index. In other words, when the S&P 500 rises, BBUS should fall. When the S&P 500 falls, BBUS should rise. We believe BBUS is a high-risk ETF to own in a portfolio, and it is expected to perform poorly over long periods of time.
The BetaShares BBUS Fund could be used by experienced investors to hedge their portfolio against market declines, effectively betting against the US stock market. This is a high risk strategy as gains and losses are magnified, compared to a simple ETF tracking the S&P 500 Index. BBUS is a highly volatile Fund, and there is no guarantee the ETF will provide effective or perfect protection in a falling market.
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*The warnings on this page are applied by our ETF research team. Please know that these warnings are 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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