Benefits of investing in the BetaShares Sustainability Leaders Diversified Bond ETF - Currency Hedged

• Responsible Investing - obtain exposure to a diverse portfolio of Australian and international bonds in a way that gives effect to environmental, social and ethical considerations

• Stringent Eligibility Criteria - bond issuers must pass a strict ESG screening process, while green bonds must be certified by the CBI

• Cost Effective - Fund aims to track the performance of an index (no active manager' fees)

• Transparent - portfolio holdings, value of the Fund's assets and net asset value per unit available daily on our website

About the Fund

The Index comprises a portfolio of fixed rate, investment grade global and Australian bonds, with a significant allocation to green bonds, that have been screened to avoid bond issuers with material exposure to the fossil fuel industry or bond issuers engaged in other activities deemed inconsistent with responsible investment considerations. Bond issuers may be corporations, governments or government agencies in developed and emerging markets, or supranational bodies. 50% of the index weight will be allocated to Australian dollar-denominated bonds and 50% to Euro/U.S. dollar-denominated bonds at each monthly rebalance. The foreign currency exposure of index constituents is hedged back to the Australian dollar.

What are "green bonds?

At least 50% of the Index at each rebalance will comprise green bonds. Green bonds are bonds issued to fund projects that have positive environmental and/or climate benefits. To be eligible for inclusion in the Index, such bonds must be verified as meeting sector-specific environmental standards set by the Climate Bonds Initiative, an international not-for-profit organisation which promotes the development of green bonds.

See section 2.1.3 of the PDS for more information.

Investment objective

The investment objective of the Fund is to provide an investment return that aims to track the performance of the Solactive Australian and Global Select Sustainability Leaders Bond TR Index - AUD Hedged (the "Index), before taking into account fees and expenses.

How to use this ETF in your portfolio

• A core component of a fixed income allocation providing transparency and diversification benefits in addition to being consistent with ethical and sustainable objectives

• In combination with equities-focused responsible investments such as BetaShares' ETHI or FAIR ETFs, create a balanced ethically-based investment portfolio diversified across asset classes.

How we invest your money

In seeking to achieve the investment objective, the Responsible Entity will employ a passive management approach with the aim of tracking the performance of the Index, before fees and expenses.

The Fund expects to hold a representative sample of the securities that comprise the Index that is representative of the characteristics of the constituents of the Index as a whole. The aim of the sampling strategy is to construct a portfolio that provides a return profile comparable to that of the Index. Under this approach, the Fund's exposure to individual securities may be above or below that security's actual weighting in the Index, and the Fund may also hold securities that have been or are expected to be included in the Index. The Fund may hold as many securities as the Responsible Entity believes is necessary to achieve the Fund's investment objective. The sample of securities will be determined based on a number of factors, including the duration and liquidity characteristics of the securities, the size of the Fund and the portfolio's exposure to different currencies (in each case, relative to the corresponding exposures under the Index).

As the component of the Index that comprises Euro and U.S. dollar-denominated bonds is hedged into Australian dollars, the Fund will also invest in forward foreign exchange contracts for index-tracking purposes. While this seeks to minimise the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund's exposure to foreign currency movements.

The Fund may use exchange-traded derivatives, such as bond futures, where this may help to achieve the Fund's investment objectives. For example, exchange-traded derivatives may be used where direct investment in a particular security or securities is not possible or practicable, or to obtain an investment exposure without physically buying or selling the underlying asset. Such derivatives will only be used in limited circumstances.

For information on the Index and stock screening criteria, please see section 2 of the PDS.