BGBL v GGBL, Gearing 101, and debt inside Super
Australian Finance Podcast
Operational details and loan security
Cameron clarifies loan segregation per fund, counterparties' security interest, and institutional borrowing advantages.
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
Chapters (approximate)
(00:00) Introduction
(04:52) How Gearing Works in ETFs
(09:15) Advantages of Using Gearing in Investments
(11:33) Tax Implications of Gearing
(15:04) Risks and Downsides of Gearing
(17:44) Comparing Different Gearing Strategies
(20:55) Long-Term Performance and Rebalancing
(24:15) Investing in Super: Advantages and Disadvantages
(27:36) Understanding GGBL: A New Investment Opportunity
(29:33) Risk Tolerance and Market Volatility
(34:23) Managing Gearing Levels in ETFs
(39:03) The Mechanics of Gearing and Rebalancing
Resources for this episode
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DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg
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