How to accelerate your long-term wealth creation

LiveWire07-15

This interview was taped on Tuesday 18 June 2024. Once the domain of sophisticated investors with a broker on speed dial, gearing has evolved courtesy of ETFs. Leveraging returns in one click, without...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2451650554?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-07-15 09:30","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2451650554","market":"us","top_or_hot":-1,"title":"How to accelerate your long-term wealth creation","media":"LiveWire","content":"<div>\n<p>This interview was taped on Tuesday 18 June 2024.\nOnce the domain of sophisticated investors with a broker on speed dial, gearing has evolved courtesy of ETFs. Leveraging returns in one click, without...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/how-to-accelerate-your-long-term-wealth-creation\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How to accelerate your long-term wealth creation</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow to accelerate your long-term wealth creation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-15 09:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/how-to-accelerate-your-long-term-wealth-creation><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>This interview was taped on Tuesday 18 June 2024.\nOnce the domain of sophisticated investors with a broker on speed dial, gearing has evolved courtesy of ETFs. Leveraging returns in one click, without...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/how-to-accelerate-your-long-term-wealth-creation\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"A200.AU","symbol_name":"BetaShares Australia 200","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/how-to-accelerate-your-long-term-wealth-creation","article_id":"2451650554","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/how-to-accelerate-your-long-term-wealth-creation","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2451650554","pubTimestamp":1721007030,"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"This interview was taped on Tuesday 18 June 2024.Once the domain of sophisticated investors with a broker on speed dial, gearing has evolved courtesy of ETFs. Leveraging returns in one click, without the risk of a margin call holds appeal for many investors with a deep understanding of how to use them.“There’s a range of different ways you can use a geared solution. Of course, this depends on your risk tolerance and having a view that, over the long term, markets will generally appreciate,” says  Cameron Gleeson, Senior Investment Specialist for Betashares.Betashares is responsible for the bulk of the geared ETF options available on the ASX, with the first listed a decade ago. It’s still a burgeoning space with many investors unaware of them, but with the market at highs, perhaps now they should be taking a closer look.Exactly right. These are both based on very popular existing products. They have wide support. We think we’re going to see a lot of self-directed investors target these ","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"A200.AU":"BetaShares Australia 200","GEAR.AU":"BETASHARES GEARED AUS EQTY F","XKO.AU":"标普/澳交所 300指数","GGUS.AU":"BETASHARES GEAR US EQT CUR H","BK4585":"ETF&股票定投概念","FDN":"First Trust Dow Jones Internet I","GHHF.AU":"Betashares Wealth Builder Diversified All Growth Geared 30-40% LVR Complex ETF","BK4550":"红杉资本持仓","BK4588":"碎股","XAO.AU":"标普/澳交所 普通股指数","G200.AU":"Betashares Wealth Builder Australia 200 Geared 30-40% LVR Complex ETF","XJO.AU":"标普/澳交所 200指数","DHHF.AU":"BETA DIV ALL GROWTH ETF"},"translate_title":"如何加速您的长期财富创造","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"A200.AU":1,"DHHF.AU":1,"G200.AU":1,"GEAR.AU":1,"GGUS.AU":1,"GHHF.AU":1,"FDN":0.9,"XAO.AU":0.9,"XJO.AU":0.9,"XKO.AU":0.9},"content_text":"This interview was taped on Tuesday 18 June 2024.\nOnce the domain of sophisticated investors with a broker on speed dial, gearing has evolved courtesy of ETFs. Leveraging returns in one click, without the risk of a margin call holds appeal for many investors with a deep understanding of how to use them.\n“There’s a range of different ways you can use a geared solution. Of course, this depends on your risk tolerance and having a view that, over the long term, markets will generally appreciate,” says  Cameron Gleeson, Senior Investment Specialist for Betashares.\nHe points to examples of younger investors using dollar-cost averaging approaches to gearing or SMSF investors seeking to increase exposure to franking credits.\nBetashares is responsible for the bulk of the geared ETF options available on the ASX, with the first listed a decade ago. It’s still a burgeoning space with many investors unaware of them, but with the market at highs, perhaps now they should be taking a closer look.\nParticularly in light of Betashares’ two newest listings which offered geared exposure to the ASX’s largest companies and diversified Australian and global exposure. The Betashares Wealth Builder Australia 200 Geared (30-40% LVR) Complex ETF (ASX: G200) and the Betashares Wealth Builder Diversified All Growth Geared (30-40% LVR) Complex ETF (ASX: GHHF) are changing the face of gearing in ETFs further. \nUnlike traditional geared products where you might expect to monitor activity and dip in and out on even a minute-by-minute basis, these are designed for a longer-term strategy.\nIn this episode of The Pitch, Gleeson explores how to use gearing in a portfolio to build wealth and takes a closer look at the workings of G200 and GHHF.\nEdited transcript\nWhat was the rationale for launching the two new Wealth Builder funds?\nThe original idea actually came from a Betashares investor who was using our DHHF fund [Diversified All Growth ETF (ASX: DHHF)], which is a diversified all-growth fund, and he asked whether or not we could create a moderately geared version of that fund because he wanted to use it to build long-term wealth. \nThat’s the original genesis, and we as a team took that and looked at it. We looked at what sort of conditions would suit this fund and how it behaved in different parts of the market cycle. And, frankly, we were convinced. We saw this as a really good solution. We launched two funds within the Wealth Builder range, the first two funds which are GHHF – providing diversified exposure to around 4,000 Australian and global listed securities. Then G200 which provides exposure to the 200 largest ASX-listed companies.\n\n\n\n\n\n\n\n\n\n\nThat’s a geared version of the Betashares Australia 200 ETF (ASX: A200)?\nExactly right. These are both based on very popular existing products. They have wide support. We think we’re going to see a lot of self-directed investors target these funds and look to add them to their portfolios, as well as advisors who see these are relevant solutions for certain clients they manage.\nHow can investors incorporate geared strategies into their portfolios?\nThere’s a range of different ways you can use a geared solution. Of course, this depends on your risk tolerance and having a view that, over the long term, markets will generally appreciate. \nBut, some examples include a young investor who perhaps doesn’t have a great deal of capital behind them using a dollar-cost average approach to use the market’s compounding power to grow their wealth over the long term. Or, an SMSF solution for increasing the amount of exposure you can get out of your capped super contributions or indeed, increasing your access to franking credits within an SMSF.\nThen, you also get investors that might want to be a bit more efficient with the amount of capital they allocate to their investments, perhaps use or release capital to pay down non-deductible debt. There’s a whole range of different ways that investors can use these funds.\nThey're often referred to as complex ETFs. Why is this?\nASIC has released some new rules around the naming of ETFs and that’s to help investors understand what they are buying. From April of this year, all new ETFs launched that have some form of leveraged exposure to derivatives to gain exposure must include the word ‘complex’ in the name. There are existing funds that have a 12-month grace period, for example, the Geared Australian Equity Fund (hedge fund) (ASX: GEAR). Those existing funds are also going to have to migrate across and change their name to include complex.\nHow are GHHF and G200 different from other geared ETFs like GEAR?\nGEAR and GGUS (Geared US Equity Fund - Currency Hedged (hedged fund) (ASX: GGUS)) are our two original geared products and we launched them about 10 years ago. Those funds were designed to provide low-cost leveraged exposure to US and Australian equities. But, what they do provide is a relatively strong degree or high degree of leverage. The exposure you are going to get with these funds is roughly two to nearly three times the exposure to the underlying portfolios that they hold.\nNow, in contrast, the Wealth Builder funds are much more moderately geared. GHHF and G200 provide around 1.5 times leverage, the lower level of leverage. We think that does allow someone to accelerate their wealth, but doesn’t push the volatility beyond the level that a lot of investors are seeking to remain under. \nCertainly, lots of people are big supporters of GEAR and GGUS, but others are going to want something with a slightly lower level of volatility and we think this is a great solution for those people.\nBuild your wealth\nBetashares are excited to announce the launch of a new ‘Wealth Builder’ range comprising Australia’s first ‘moderately geared’ exchange traded funds on the ASX. The ETFs are anticipated to provide a gearing ratio generally between 30-40% on a given day. For more information, please visit the Betashares website. \n\n\n\nETF\nBetashares Wealth Builder Australia 200 Geared (30-40% LVR) Complex ETF (G200)\nAustralian Shares\n\n\nView\n\n\n\n\n\n\nETF\nBetashares Wealth Builder Diversified All Growth Geared (30-40% LVR) Complex ETF (GHHF)\nGlobal Shares\n\n\nView\n\n\n\n\n\n\n\nNever miss an update\n\n    Enjoy this wire? Hit the ‘like’ button to let us know. \n    Stay up to date with my current content by \n    following me below and you’ll be notified every time I post a wire","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2451650554"}