BetaShares Geared U.S. Equity Fund - Currency Hedged (GGUS)

Overview

The fund is dedicated to attaining its investment aim by channeling at least 80% of its assets into equity securities that are part of its foundational index. This commitment extends to investing in depositary receipts that represent equity securities listed in the index, as well as directly investing in underlying stocks as an alternative to depositary receipts when necessary. The core objective of this strategy is to mirror the performance of its designated index, which is specifically constructed to gauge the progress of large and mid-capitalization growth sectors within the U.S. equity market. A distinctive feature of this fund is its implementation of a capping methodology, which is designed to ensure a balanced representation of the index components, thus mitigating concentration risk.

Products and Services

• Equity Securities Investment

This investment approach focuses on acquiring equity securities that form part of the fund’s primary index. The index reflects segments of the market deemed to present growth opportunities within the large- and mid-cap sectors, making it an attractive option for investors aiming to benefit from equity asset growth.

• Depositary Receipts Investment

The fund invests in depositary receipts, which are a form of equity security that represents a company's underlying stock. This method allows the fund to hold foreign stocks indirectly and is particularly useful when direct investment in underlying stocks is not feasible or preferred. This strategy broadens the fund’s investment portfolio and facilitates access to a diverse range of growth opportunities in the U.S. equity market.

• Underlying Stocks Direct Investment

Direct investment in underlying stocks is another key component of the fund’s strategy, providing an alternative to investing in depositary receipts. This direct approach enables the fund to have actual ownership of shares in companies included in its underlying index, offering investors direct exposure to the US equity market’s large- and mid-cap growth segments.

• Capping Methodology Application

The use of a capping methodology underscores the fund’s commitment to maintaining a balanced and diversified portfolio. This approach limits the weight of any single issuer in the index to avoid overexposure, thereby reducing the risk of significant losses linked to the performance of individual securities. It ensures that the fund’s investments are spread across various issuers, promoting stability and potentially enhancing returns over time.