To gear, or not to gear- that is the question...
Geared ETFs have had a bit of a moment in the past few years. Plenty of popular ETFs such as NDQ, A200 and DHHF now have “geared” versions.
But what does that mean? How do geared ETFs work? And if their long term performance is expected to be better- should you be buying them instead?
Today Cam Gleeson, Senior Investment Strategist at Betashares, joins Jess to answer community member John’s question; how he should invest in the geared version of ETFs he already owns?
Plus Jess walks though her portfolio and get’s Cam’s take on switching to G200 from A200 and GGBL from BGBL.
Chapters:
00:00:00 Why Borrow To Buy Shares
00:02:03 What Gearing Is And Why Investors Use It
00:06:06 Inside A Geared ETF
00:08:30 Should You Switch Or Own Both
00:11:23 Can You Time The Market
00:12:30 Core And Satellite Strategies
00:15:35 How Geared ETFs Work Behind The Scenes
00:18:30 Costs Interest Rates And Fees
00:21:30 What Happens In Bull And Bear Markets
00:25:01 Should Beginners Use Gearing
00:27:43 Cam's Rules For Using Gearing
Links mentioned in this episode:
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In the spirit of reconciliation, Equity Mates Media and the hosts of Get Started Investing acknowledge the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander people today.
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Get Started Investing is a product of Equity Mates Media.
This podcast is intended for education and entertainment purposes only. Any advice is general advice, and has not taken into account your personal financial circumstances. Before acting on general advice, you should consider if it is relevant to your needs. If you are unsure, please speak to a financial professional. The hosts of this podcast and their guests may have positions in the companies mentioned. Equity Mates Media is part of the Betashares group but maintains editorial independence.
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