The LNAS ETF, traded on the ASX, is a bullish ETF for leveraged exposure to tech-based NASDAQ; the ETF is hedged, so local investors have no exposure to moves in the AUDUSD. Fees are 1.0% pa, while dividends are paid once a year in June, where appropriate, but were omitted in 2024. Again, this ETF is not for yield. The LNAS aims to deliver gearing around 2.35x; hence, if the US NASDAQ Index goes up 1% today, the ETF would be expected to go up approximately 2.35% before fees and expenses. Note, again, the Fund is actively managed, and the gearing multiple will change slightly daily, which will affect returns over time, as do moves in the AUDUSD – a weak $US reduces returns for local investors.
The ETF’s tracking of the US tech-market is “okay” over the last month, the Nasdaq Index rallied 6.19% while the LNAS ETF has gained 11.84%, around 1.91x – the shorter the timeframe the better the tracking.
- We like the LNAS ETF if/when US tech-stocks experience dips over the coming months, but the risk/reward of chasing strength at this stage is unappealing.
