BetaShares has launched a managed fund allowing investors to hedge against a decline in the value of the Australian equities market.
BetaShares Australian Equities Bear Hedge Fund (BEAR) is designed to generate returns that are negatively correlated to the S&P/ASX 200.
The BEAR fund offers a way of obtaining short exposure to the share market, as units can be bought and sold on the Australian Securities Exchange (ASX).
The fund invests all assets in cash and cash equivalents, obtaining short exposure from futures contracts (ASX SPI 200).
Head of investment strategy at BetaShares, Drew Corbett said the fund was relevant to investors considering the current volatility in equity markets.
"We have seen the Australian equities market swing markedly and stay range bound in the last 18 months…investors now have a tool that provides the potential to profit from, or hedge against, market downturns," he said.
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