BetaShares Australian Top 20 Equity Yield Maximiser Fund (YMAX)
About this Fund
|FUND MANAGER||BetaShares Capital|
|ASSET CLASS||ACTIVE EXCHANGE TRADED FUNDS|
|INVESTMENT STYLE||The Fund invests in a portfolio that provides exposure to the largest 20 Australian securities listed on the ASX combined with written call options.|
|INVESTMENT PROFILE||The Fund seeks to provide attractive quarterly income that exceeds the dividend yield of the portfolio of underlying shares over the medium term with lower overall volatility than the underlying share portfolio.|
|BENCHMARK||Solactive Australia 20 Index|
|FUND SIZE||Solactive Australia 20 Index|
|NO. OF HOLDINGS||Up to 20|
Benefits of investing in the BetaShares Australian Top 20 Equity Yield Maximiser Fund
About the Fund
The Fund aims to provide investors with exposure to a portfolio of the largest 20 blue-chip Australian shares listed on the Australian Securities Exchange (ASX), while providing attractive quarterly income that exceeds the dividend yield of the portfolio of underlying shares over the medium term. In addition, the Fund aims to provide lower overall volatility than the underlying share portfolio. It does not aim to track the Index.
How to use this ETF in your portfolio
The Fund can be used to implement a variety of investment strategies. For example:
How we invest your money
The Share Portfolio consists of the largest 20 Australian securities. The Share Portfolio is passively managed, meaning that the weighting of each security will generally mirror the weighting of the security within the Index. The Share Portfolio aims to generate dividends, franking credits and some capital growth. The Fund will also sell (or "write) exchange-traded call options on up to 100% of the securities in the Share Portfolio. The call options are actively managed and will be written with terms of one to three months and strike prices that are expected to be approximately 3% to 7% above the then current market prices of the securities, subject to prevailing levels of volatility.
By writing call options, the Fund will receive option premiums which are expected to provide an additional source of income for the Fund and a partial hedge against a decline in the value of the Share Portfolio.
The Fund's strategy would be expected to outperform a strategy of holding the Share Portfolio alone (i.e. without writing call options) in falling, flat and gradually rising markets. However, the Fund's strategy can be expected to underperform in a strongly rising market, as the Fund's equity securities move above the strike prices of the call options - moderating the capital growth of the Fund and limiting the potential for any yield enhancement over and above the dividend yield.
For more information on the strategy, please see section 2 of the PDS.