Position in a bearish ETF?

Hi Leigh,

There looks to be a short-term trade in the BBOZ however, we think buying the BBOZ would be fighting the prevailing trend of the market, which is still up, and our view remains that equities will trade higher from here, albeit from mildly lower levels. We would be more inclined to use BBOZ if we had the view that markets would trend down for a longer period of time.

With the BBOZ, it’s also important to be quick to exit if it goes against you, due to the structure of the product. They short SPI Futures using leverage and are forced to maintain exposure within 2-2.45x the market parameter, which means they are forced to reduce exposure if the market rallies.

• Remember, when you are short something that goes against you, the exposure / problem gets bigger, whereas when we are long and wrong, the exposure/problem naturally gets smaller.

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Betashares Leveraged Short ASX ETF (BBOZ)

LAST UPDATED 05/04/2024 12:05

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Betashares Leveraged Short ASX ETF (BBOZ)

LAST UPDATED 05/04/2024 12:05