Geared Wealth Builder Funds: Your Questions Answered

[@steph-ij3tb]

Thanks for this. Great insights.

[@kevinvo6144]

Do these geared ETFs rebalance daily like the ones from USA? How often do you rebalance the gearing? I heard that GEAR only has been rebalanced a few times since it came out. Thanks.

[@Betashares]

Hey Kevin, these ETFs are rebalanced only if they fall outside the gearing range (e.g. 30 - 40% for GHHF). This helps keep costs low compared to other ETFs that rebalance daily. Hope this helps.

[@kevinvo6144]

@@Betashares Thanks for the reply. Daily rebalancing actually gives worse results for long-term investors due to higher leverage decay, so less frequent rebalancing is great news! I've been investing in DHHF for my kids but this new GHHF seems like a great long-term option. Cheers.

[@steph-ij3tb]

I have a question, what is GHHF, GEAR and G200 franking credit?

[@Betashares]

Hi Steph, thanks for reaching out. The estimated franking % for June's distributions can be found in the Final distribution announcement yourir.info/resources/c4da19bcce80a21d/announcements/g200.asx/2A1532412/G200_Final_Distribution_Announcement.pdf

[@grahamwilliams7617]

Is GHHF the geared equivalent of DHHF ? Does it contain A200, VTI, SPDW and SPEM like DHFF, or something else ? Is it a geared ETF of ETFs ?

[@Betashares]

It is a geared ETF of ETFs, but it's holdings are slightly different than DHHF. It holds BGBL, A200, HGBL, and IEMG. You can find the full portfolio holdings on the fund webpage.

[@bluezoidberg7124]

Will these ETFs receive dividends? For example a200 has a current yield of 3.55% (according to the betashares direct app) , if g200 is leveraged, will that mean that the dividends are also increased? Or is the money intended to be re-invested as to provide a purely growth stock? {I forgot on the rules of ETFs & whether or not they have to payout dividends}

[@Betashares]

Yes, the ETFs receive dividends. Because of the leverage, this also increases the distribution yield, which is distributed to unit holders. Hope this helps!

[@bluezoidberg7124]

@@Betashares Thank you, appreciate the quick answer 👍

[@WishBlessing]

Thanks!