BetaShares US Equities Strong Bear FX Hedged ETF (BBUS) $3.47

The objective of the BBUS ETF is to allow investors to profit from a declining S&P 500 with 2-2.75x leverage. Again, like most bearish ETFs, it’s relatively expensive, costing 1.38% pa and has the mechanism around reducing exposure if the market moves higher on any given day as with the BBOZ. During the panic selloff, primarily in April, the S&P 500 fell 21.3% while the BBUS ETF surged +64%. This could be an excellent trading/hedging vehicle especially if one believes US tech will spearhead the move, e.g.  8% will translate to a ~18% gain.

• We can see the S&P 500 retreating ~3-4% but such a move is unlikely to push the BBUS ETF up much more than 10%.