BetaShares S&P 500 Yield Maximiser Fund (UMAX)
|Beyond Dividends: How to boost your equity income|
About this Fund
|FUND MANAGER||Horizons ETFs Management|
|ASSET CLASS||ACTIVE EXCHANGE TRADED FUNDS|
|INVESTMENT STYLE||The Fund aims to provide investors with exposure to the stocks comprising the S&P 500 Index.|
|INVESTMENT PROFILE||The Fund seeks to provide regular income that exceeds the dividend yield of the stocks in the portfolio alone, as well as some capital growth and lower overall volatility than the Index.|
|BENCHMARK||S&P 500 Index (AUD)|
|FUND SIZE||S&P 500 Index (AUD)|
|NO. OF HOLDINGS||Around 500|
Benefits of investing in the BetaShares S&P 500 Yield Maximiser Fund
About the Fund
The Fund aims to provide investors with exposure to the stocks comprising the S&P 500 Index (which tracks large capitalisation U.S. equities) while providing regular income that exceeds the dividend yield of the stocks alone. In addition, the Fund aims to provide the potential for some capital growth and lower overall volatility than the Index. 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 will provide exposure to U.S. stocks as represented in the S&P 500 Index ("Index). The Index measures the performance of the large capitalisation sector of the U.S. equity market. The Share Portfolio aims to generate dividends and capital growth.
In addition to the Share Portfolio the Fund will also sell (or "write) exchange-traded index call options on up to 100% of the Fund's exposure to the Index. The call options will generally be written with terms of less than three months and strike prices that are generally "out-of-the-money i.e. expected to be approximately 2% to 5% above the then current level of the Index, subject to the prevailing levels of volatility.
By writing index 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 is expected to outperform a strategy of holding the Share Portfolio alone (i.e. without writing index 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 does not participate in any rise in the Index above the strike prices of the index call options - moderating the potential capital growth of the Fund.
For more information on the strategy, please see section 2 of the PDS.