Recently I've been looking at leveraged ETFs (typically between 1.5-2.5x) such as GGUS and GEAR.
I see the direct* management fees are about 0.8-1%, and I can't find any mention of cost of borrowing or anything similar like you do when you individually try and take out a margin loan. Is this because the funds are leveraged through use of futures and the cost of 1.5-2.5x exposure is actually limited to that 0.8-1%, orrr is it because the fund managers have hidden the cost of borrowing deep in the prospectus and PDS?
*these leveraged funds usually invest 100% of their assets in some other ETF, e.g. GGUS has 100% allocated to NASDAQ-listed ETF: IVV, and IVV has its own management fee of about 0.04%, which would indirectly be a cost to you.
Thanks.
- Forums
- ASX - General
- Leveraged ETFs - Cost of Borrowing?
Recently I've been looking at leveraged ETFs (typically between...
Featured News
Featured News
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
Previous Video
Next Video
SPONSORED BY The Market Online