Australian (ASX) Stock Market Forum

GEAR - BetaShares Geared Australian Equity Fund (hedge fund)

If you have the time, better to use call/ put option on indexes but, you can pay a fortune for options brokerage fees, may not have access to these and it is more comfortable to deal with stocks like gear/BBOZ..options are a world and language of their own
 
GEAR is my pick for the competition in October

i do not hold GEAR yet, but expect it to hit some 'headwinds' in the rest of September , potentially giving me a chance to dip my toe in the water , however in October i am thinking the US will throw a massive stimulus plan ( or market bailout ) to rescue the mid-term elections in early November ( and am thinking our ASX will get a boost from that action )

PS if i can get an entry-point i plan to CAREFULLY accumulate GEAR into the longer term ( as i expect an L-shaped recovery going into 2023 )

Top 10 Holdings .. Portfolio Turnover 6.57%​


BHPBHP Group Ltd9.97%
CBACommonwealth Bank of Australia8.06%
CSLCSL Ltd6.86%
NABNational Australia Bank Ltd4.77%
WBCWestpac Banking Corp3.67%
Top 10 Holdings
CODECOMPANYASSET
ANZAustralia and New Zealand Banking Group Ltd3.30%
WDSWoodside Energy Group Ltd3.13%
MQGMacquarie Group Ltd3.10%
WESWesfarmers Ltd2.58%
TLSTelstra Corp Ltd2.23%

unlike many portfolios

of the top ten in this fund , i hold BHP , ( a trivial amount of ) WBC , WDS , MQG ( 'free-carried ' ) and WES so my concentration risk is lower than many investors
 
The ASX remains stuck in its range. It's Sept and the seasonal weakness has started. I've started to accumulate GEAR in a conservative portfolio that I tend to let sit without much activity. I hoping that the weakness continues and I can buy more GEAR near the lows of this range. I'll buy a little at every dollar level. Now at 24, then at 23, 22 etc. If the markets sells off quickly then I'll try to time the bottom.

My underlying reason is that the world still requires our resources. They may not need to buy them now but eventually they must. Plus they're getting great value with the AUD so low.
 
The ASX remains stuck in its range. It's Sept and the seasonal weakness has started. I've started to accumulate GEAR in a conservative portfolio that I tend to let sit without much activity. I hoping that the weakness continues and I can buy more GEAR near the lows of this range. I'll buy a little at every dollar level. Now at 24, then at 23, 22 etc. If the markets sells off quickly then I'll try to time the bottom.

My underlying reason is that the world still requires our resources. They may not need to buy them now but eventually they must. Plus they're getting great value with the AUD so low.

Is there a comparison to be made between IOZ and GEAR? IOZ is currently my biggest ETF holding and want to keep adding but don't want to put all my Super eggs in one basket. Is this just the same basket?
 
Is there a comparison to be made between IOZ and GEAR? IOZ is currently my biggest ETF holding and want to keep adding but don't want to put all my Super eggs in one basket. Is this just the same basket?
well GEAR as the name implies is leveraged



now since i do not hold either GEAR or IOZ i am not sure whether either has a DRP

and a DRP would put an extra tweak into any accumulation plan

but according to the fact sheetsheets GEAR and IOZ are close to identical baskets except one adds a gearing component ( and a hefty fee for doing so )
 
well GEAR as the name implies is leveraged



now since i do not hold either GEAR or IOZ i am not sure whether either has a DRP

and a DRP would put an extra tweak into any accumulation plan

but according to the fact sheetsheets GEAR and IOZ are close to identical baskets except one adds a gearing component ( and a hefty fee for doing so )

I DRP IOZ. Will check the fees on GEAR. I have a feeling they'd be same same and it just depends on entry points to squeezing out any additional winnings. Or, in the long run, it's time in, not timing.
 
well i can only compare with my journey with VAS since 2011 i DRPed them after averaging down during 2011 now DRPing worked nicely ( much better with VHY because of the lower share price but comparable distributions )

DRP on a six-monthly payer isn't so sweet but with GEAR that might be offset by the extra franking credits

so GEAR seems to dip lower than the normal index ETFs so it would depend how tolerant the investor is to capital ( unrealized ) losses

( some close to faint when they are down 20% , i consider if i should add some more @ -20% )

but could be an investing strategy ( dual investing ) as GEAR and IOZ should move independently in turbulent times
 
I DRP IOZ. Will check the fees on GEAR. I have a feeling they'd be same same and it just depends on entry points to squeezing out any additional winnings. Or, in the long run, it's time in, not timing.
Beware beware do not even think about staying long term in either gear or bboz. They are both short term plays, I use (d) but there is a slow grinding effect eating at the value on a medium long term play..so gearat least is not time in but timing.
Not sure about ioz as I never used it
 
Beware beware do not even think about staying long term in either gear or bboz. AllThey are both short term plays, I use (d) but there is a slow grinding effect eating at the value on a medium long term play..so gearat least is not time in but timing.
Not sure about ioz as I never used it
To add to the above, has been discussed before, but it is structural so yes, play with these but not as long term investment ...
 
To add to the above, has been discussed before, but it is structural so yes, play with these but not as long term investment ...

Well, I'm looking to park my super in some super, so this might not be for me. More research needed. Thanks.
 
Beware beware do not even think about staying long term in either gear or bboz. They are both short term plays, I use (d) but there is a slow grinding effect eating at the value on a medium long term play..so gearat least is not time in but timing.
Not sure about ioz as I never used it
BBOZ absolutely as a short-term play ( i used these successfully between September 2019 and March 2020 ) but have resisted since
GEAR i have not bought into , but am still looking , waiting and thinking ( so have no hands on experience )

but to me the leverage factor vs the extra fees is something to consider but at least you don't have to worry about currency hedging ( into the bargain )

a straight index fund on ASX listed funds i find useful as insurance ( against me selecting too many dud/unlucky stocks ) i selected VAS only because the XKO ( top 300 ) had a marginally better growth potential over the XJO mandate
 
Well, I'm looking to park my super in some super, so this might not be for me. More research needed. Thanks.
Yes a VAS or similar for long term.
If you have time, chart Gear vs ASX on a couple of years window and I expect you to see what I mean even on a flat market.
 
Yes a VAS or similar for long term.
If you have time, chart Gear vs ASX on a couple of years window and I expect you to see what I mean even on a flat market.
for GEAR i was hoping to buy/add in a reasonable downtrend and let the DRP work it's magic , but the six-monthly divs ( compared to 3 monthly by some ungeared rivals ) might remove the shine off that theory
 
Betashares estimated distributions have been released today. XD date is Jan 2, 2024. Paid 17th Jan, 2024

GEAR ~ 0.555 $/unit - paid semi-annual
URNM ~0.01

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