BetaShares launches four new bond funds for ‘experienced investors’

BetaShares has announced the launch of the four funds offering geared long and geared short exposure to 10-year U.S. Treasuries and Australian Government Bonds on the Australian Securities Exchange (ASX).

It said the new funds would be expected to appeal to “experienced investors” seeking to manage fixed income exposure in their portfolio, and for those who are “comfortable with the higher risk associated with geared investments.”

Betashares said that cash and fixed income investing had been particularly relevant for Australian ETF investors so far this year, with the asset class receiving the $5.6 billion in net inflows over the calendar year to 31 October 2023, making it the most popular asset class so far this year.

Betashares chief executive, Alex Vynokur, said the new funds would provide experienced investors with a way to adjust interest rate risk in their portfolios by either increasing or decreasing the duration of their existing bond portfolio.

“Our new range of geared fixed income exposures can play a helpful role in allowing investors and asset allocators navigate different market conditions in a more convenient investment vehicle,” he said.

The four new funds are:

• Betashares Geared Long Australian Government Bond Fund (hedge fund) (ASX: GGAB) which seeks to generate magnified gains when the prices of 10-year Australian Government Bonds rise on a given day (and conversely magnified losses when the bond prices fall on a given day).
• Betashares Geared Short Australian Government Bond Fund (hedge fund) (ASX: BBAB) which seeks to generate magnified gains when the prices of 10-year Australian Government Bonds fall on a given day (and conversely magnified losses when the bond prices rise on a given day).
• Betashares Geared Long U.S. Treasury Bond Fund – Currency Hedged (hedge fund) (ASX: GGFD) which seeks to generate magnified gains when the prices of 10-year US Treasury Bonds rise on a given day (and conversely magnified losses when the bond prices fall on a given day).
• Betashares Geared Short U.S. Treasury Bond Fund – Currency Hedged Fund (hedge fund) (ASX: BBFD) which seeks to generate magnified gains when the prices of 10-year US Treasury Bonds fall on a given day (and conversely magnified losses when the bond prices rise on a given day)