What’s up with the BetaShares US Equities Strong Bear Currency Hedged (Hedge Fund) ETF (ASX:BBUS)?

If you’re looking for an ASX ETF in the International shares sector, chances are, the BetaShares US Equities Strong Bear Currency Hedged (Hedge Fund) ETF (ASX: BBUS) is an ETF you’re considering. Here’s what you need to know.

How ASX investors can use the BBUS ETF

The BetaShares BBUS Fund is designed to provide protection from a declining US share market. When the S&P 500 Total Return Index falls, BBUS aims to generate magnified returns for investors.
The BetaShares BBUS Fund could be used by experienced investors to hedge their portfolio against market declines, effectively betting against the US stock market. This is a high risk strategy as gains and losses are magnified, compared to a simple ETF tracking the S&P 500 Index. BBUS is a highly volatile Fund, and there is no guarantee the ETF will provide effective or perfect protection in a falling market.

BBUS meets our minimum market cap (FUM) criteria

The BetaShares BBUS ETF had $207.56 million of money invested when we last pulled the monthly numbers. Given BBUS’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.

BBUS ETF fees explained

BetaShares charges investors a yearly management fee of 1.38% for the BBUS ETF. This means that if you invested $2,000 in BBUS for a full year, you could expect to pay management fees of around $27.60.

For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.

Putting it all together

If you’re weighing up investing in BBUS, keep in mind that this is just a brief introduction to the ETF. To supercharge your research, take a look at our free BetaShares BBUS report. Then, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.