In this Australian Finance Podcast episode, your host Owen Rask chats with Cameron Gleeson, Senior Investment Strategist at Betashares, to break down the concept of gearing using ETFs. Together, they explore:
- What gearing means in a finance and ETF context
- How Betashares Wealth Builder ETFs use leverage
- The difference between moderate gearing (30–40%) and high gearing (50–65%)
- Why gearing can help you outperform over the long term
- Who should (and shouldn’t) consider geared ETFs
- How gearing works inside superannuation
Whether you’re new to investing or looking for advanced portfolio tools, this episode unpacks gearing step-by-step in plain English.
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Topics Covered
- What is Gearing in Finance?
- How Gearing Works Inside an ETF
- Example: 100 + 50 = 150 (Loan to Value Ratio explained)
- The Difference Between Margin Loans and Geared ETFs
- Interest Rates: What Betashares Pays vs Individuals
- Rebalancing Explained: Managing the Gearing Level
- Drawdowns, Volatility & Risks of Leverage
- ETF Ticker Breakdown:
- GEAR (High-geared Aussie Equities)
- GGUS (High-geared US Equities)
- G200 (Moderately Geared Aussie Equities)
- GNDQ (Moderately Geared NASDAQ)
- GGBL (Moderately Geared Global Equities)
- Gearing in Super: Pros & Considerations
- When Gearing Doesn’t Work
- Blending Geared and Non-Geared ETFs in a Portfolio
