# BBUS - BetaShares U.S. Equities Strong Bear Hedge Fund



## mcgrath111 (1 April 2020)

Updating for April 2020 stock competition.

BBUS provides a leveraged hedge against S&P 500 (provides a negative correlation.)

Reasoning behind my pick is, the unemployment rate in the U.S is extreme. We have had a short term uptrend, yet I'm not sure how it can continue to rise; eventually the fed will run out of tricks and the market will fall down. 

Looking at ratios such as CAPE, U.S is still expensive - not to mention earning are going to be very very ugly. 

Bears ahoy!


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## finicky (25 February 2021)

Gee, been sorely tempted to put something in this today. Down a nice 3.8%, I don't know what will induce me to buy, really dithering.


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## peter2 (25 February 2021)

How about waiting for a bearish market?  We're still buying the dips atm. Wait another 5 -10 years please.


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## qldfrog (25 February 2021)

finicky said:


> Gee, been sorely tempted to put something in this today. Down a nice 3.8%, I don't know what will induce me to buy, really dithering.



Sold this morning 😂


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## finicky (25 February 2021)

We insure our cars don't we?
Just that this insurance costs so much.


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## finicky (18 April 2021)

Not yet, I guess. Easy to imagine a 'signal' breaking when it gets this quiet and smug.

2 Year Weekly:
BBUS (leveraged bear US Equities), BBOZ (leveraged bear ASX), XVI (ASX Volatility Index)


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## peter2 (29 July 2021)

Went looking for this. It had to be coming soon.





_Note: I'm annoyed that my EOD Data provider doesn't include news from many ETFs in their ASX announcements function._

This consolidation will allow BBUS plenty of room to get down to 1.00 again soon._  _


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## divs4ever (29 July 2021)

peter2 said:


> Went looking for this. It had to be coming soon.
> 
> View attachment 128100
> 
> ...



 am surprised it hasn't already  after all the US hit new records quite often


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## qldfrog (29 July 2021)

yes sadly can not be a long term holding just in and out during crash


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## divs4ever (10 August 2021)

Market Announcements Office ASX Limited Unit consolidation - BetaShares U.S. Equities Strong Bear Hedge Fund - Currency Hedged (ASX Code: BBUS) Further to the ASX announcement made on 8 July 2021, investors are reminded that the consolidation of units on issue in BBUS on a 1 for 10 basis will commence this Thursday, 12 August 2021. The consolidation will cause an increase in BBUS’ unit price to reflect the reduced number of units on issue, which is expected to result in a more favourable bid-offer spread for investors in percentage terms. Timetable As previously announced, the consolidation is expected to occur in accordance with the following timetable: Date Event 11 August 2021 Last day for trading units on pre-consolidation basis (ASX Code: BBUS). 12 August 2021 Trading commences in the post-consolidation units on a deferred settlement basis (ASX Code: BBUDA). 13 August 2021 Record Date for Consolidation Last day to register transfers of pre-consolidated units. 18 August 2021 Despatch Date Deferred settlement trading ends (ASX Code: BBUDA). Last day for sending new holding statements to unitholders. 19 August 2021 Normal trading in consolidated units commences (ASX Code: BBUS). 23 August 2021 Settlement of both first trades conducted on a normal T+2 settlement basis and of trades conducted on a deferred settlement basis. Trading during the deferred settlement period Importantly, investors are reminded that during the period 12 August to 18 August 2021 (inclusive): • the units in BBUS will trade on a deferred settlement basis under ASX Code: BBUDA (not BBUS). • any trading of units during the deferred settlement period will settle on 23 August 2021, rather than on a normal T+2 settlement basis. • the deferred settlement period will result in a delay in receiving the proceeds if an investor sells units during this period. o for example, if an investor sells their units on 12 August, they will receive the sale proceeds on 23 August, rather than on 16 August (T+2 excluding weekends). o as such, any investor that is considering selling their units during the deferred settlement period, and who may be concerned about the deferred settlement, is encouraged to factor this into their decision making. 2 Impact on units The consolidation will have no direct impact on the net asset value of BBUS. If the consolidation would otherwise result in an investor holding a fraction of a unit, BetaShares will, at its expense, round up the unit to the nearest whole number. Apart from rounding up of fractional units, the consolidation will not affect an investor’s percentage holdings in BBUS or the aggregate value of their holdings. Next steps for investors All investors in BBUS will be provided with a holding statement confirming the number of consolidated units that they hold after the consolidation. No action is required from investors to effect the consolidation or their change in unitholding.

 DYOR

 i hold  some BBUS very deep underwater


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## qldfrog (10 August 2021)

divs4ever said:


> Market Announcements Office ASX Limited Unit consolidation - BetaShares U.S. Equities Strong Bear Hedge Fund - Currency Hedged (ASX Code: BBUS) Further to the ASX announcement made on 8 July 2021, investors are reminded that the consolidation of units on issue in BBUS on a 1 for 10 basis will commence this Thursday, 12 August 2021. The consolidation will cause an increase in BBUS’ unit price to reflect the reduced number of units on issue, which is expected to result in a more favourable bid-offer spread for investors in percentage terms. Timetable As previously announced, the consolidation is expected to occur in accordance with the following timetable: Date Event 11 August 2021 Last day for trading units on pre-consolidation basis (ASX Code: BBUS). 12 August 2021 Trading commences in the post-consolidation units on a deferred settlement basis (ASX Code: BBUDA). 13 August 2021 Record Date for Consolidation Last day to register transfers of pre-consolidated units. 18 August 2021 Despatch Date Deferred settlement trading ends (ASX Code: BBUDA). Last day for sending new holding statements to unitholders. 19 August 2021 Normal trading in consolidated units commences (ASX Code: BBUS). 23 August 2021 Settlement of both first trades conducted on a normal T+2 settlement basis and of trades conducted on a deferred settlement basis. Trading during the deferred settlement period Importantly, investors are reminded that during the period 12 August to 18 August 2021 (inclusive): • the units in BBUS will trade on a deferred settlement basis under ASX Code: BBUDA (not BBUS). • any trading of units during the deferred settlement period will settle on 23 August 2021, rather than on a normal T+2 settlement basis. • the deferred settlement period will result in a delay in receiving the proceeds if an investor sells units during this period. o for example, if an investor sells their units on 12 August, they will receive the sale proceeds on 23 August, rather than on 16 August (T+2 excluding weekends). o as such, any investor that is considering selling their units during the deferred settlement period, and who may be concerned about the deferred settlement, is encouraged to factor this into their decision making. 2 Impact on units The consolidation will have no direct impact on the net asset value of BBUS. If the consolidation would otherwise result in an investor holding a fraction of a unit, BetaShares will, at its expense, round up the unit to the nearest whole number. Apart from rounding up of fractional units, the consolidation will not affect an investor’s percentage holdings in BBUS or the aggregate value of their holdings. Next steps for investors All investors in BBUS will be provided with a holding statement confirming the number of consolidated units that they hold after the consolidation. No action is required from investors to effect the consolidation or their change in unitholding.
> 
> DYOR
> 
> i hold  some BBUS very deep underwater



Thanks for the info.
I use bbus: but you can not keep these etf to hold for a while. In / out


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## divs4ever (10 August 2021)

qldfrog said:


> Thanks for the info.
> I use bbus: but you can not keep these etf to hold for a while. In / out



 yep i got caught with the last lot  ( did OK the the 'BEAR ETFs '  before  , one time too many it seems )

 if the Fed didn't shift the goalposts so often i MIGHT have been tempted to average drop  and look for a 'break-even '

 but they could easily decide to QE to infinity and beyond ( despite the current taper talk )

 oh well , i will have to make profits elsewhere


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## Joules MM1 (13 August 2021)

*Notice: BBUS units are trading under the ASX code: BBUDA during its consolidation. *


Units in BBUS are being consolidated, this process will be finalised by 18 August 2021. During the consolidation process units are currently trading under the *ASX code: BBUDA*.


Trading under the ASX code: BBUS resumes on 19 August 2021. Importantly, all trades completed between 12-18 August 2021 (inclusive) will settle on 23 August 2021. For more information, please refer to the ASX announcement in the resources section released on 8 July 2021.


Fund Objective​
BBUS seeks to generate magnified returns that are negatively correlated to the returns of the U.S. sharemarket. The Fund expects to generate a magnified positive return when the S&P 500 Total Return Index falls (and a magnified negative return when the index rises).


Fund Strategy​
A 1% fall in the U.S. sharemarket on a given day can generally be expected to deliver a 2% to 2.75% increase in the value of the Fund (and vice versa).
@finicky 








						U.S. Equities Strong Bear Fund - Currency Hedged
					

US Equities Strong Bear Hedge Fund - helps investors profit from or protect against a declining U.S. sharemarket. Learn more today.




					www.betashares.com.au


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## Joules MM1 (19 August 2021)

lol @ consolidation

$1 last week, $10 today ......now we can work our way back to a dollar again


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## divs4ever (19 August 2021)

Joules MM1 said:


> lol @ consolidation
> 
> $1 last week, $10 today ......now we can work our way back to a dollar again



 sadly that is the way MOST consolidations go 

 and with the US administration  very willing to move goalposts  and pump extraordinary amounts of liquidity  BBUS  might threaten that dollar mark  much sooner than the $20 mark ( but i hope i am wrong )


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## finicky (24 August 2021)

Signs of a Top

 This *100 year* SPX chart - overbought on a _*monthly* _chart (_That's the *RSI* in red _). *Rare*.






And *this* chart - The S&P 500 has *blown the top off its post-GFC 10 year trading range*. And it's overbought on the weekly chart.














						Signs of the top
					

Signs of the top are things that, (only) in hindsight, will make it obvious that the market was coming up to a top. Things that in the cold light of a correction will blatantly reveal that investors, if not the world, had lost their objectivity. Things that the Man in...




					www.livewiremarkets.com


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## finicky (1 October 2021)

BBUS quite strong to a higher high today, volume coming in.  BBOZ similar chart (not included)
ASX VIX (XVI) included, jumped 26% - this index was warning in Feb 2020

Not Held yet

BBUS daily





XVI daily 2 Year


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## Sean K (6 December 2021)

This thing seems to have stopped going down the past three weeks. With the Fed being a little more hawkish on rates I wonder if the inevitable rate rise(s) will be the trigger for a reversal of this? Or, do they just keep printing money, interest rates remain effectively negative, stocks keep going up and inflation goes to double digits...


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## qldfrog (6 December 2021)

always remember, not for long term holding..a burnt victim


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## divs4ever (6 December 2021)

yes some scorched fingers here too , but profitable when you get it correct


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## KevinBB (6 December 2021)

The problem with this "thing" is that you have to get the exit right, as well as the entry. I think I owed it a few years ago, saw the price rise one day, with a gap down a couple of days later when the overnight futures decided to jump. I was too late to get out.

In my opinion, going short one, or more, futures contracts would be a better hedge against a long term investment portfolio.

KH


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## Sean K (6 December 2021)

KevinBB said:


> The problem with this "thing" is that you have to get the exit right, as well as the entry. I think I owed it a few years ago, saw the price rise one day, with a gap down a couple of days later when the overnight futures decided to jump. I was too late to get out.
> 
> In my opinion, going short one, or more, futures contracts would be a better hedge against a long term investment portfolio.
> 
> KH




I've noticed a lot of gap downs in this, but perhaps it'll be gapping up soon? 25 Mar last year it went from $60 to $50 overnight... eeeek


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## divs4ever (6 December 2021)

don't neglect GEAR and GGUS ( i have never held either   , but i am a bear )  if you are confident the  cash printing will continue ( at least in the near term )


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## Sean K (20 December 2021)

Interesting action today and the volume over the past few months. Not sure how to read it just yet, but tempted to call 8.35-40 a bottom for the short term. Very long term this thing is obviously going to keep going down, but experimenting with this as a short term hedge at the moment.


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## Logique2 (1 January 2022)

finicky said:


> Signs of a Top
> 
> This *100 year* SPX chart - overbought on a _*monthly* _chart (_That's the *RSI* in red _). *Rare*.
> 
> ...



Enjoying your work Finicky.  I've included this one in my selections in the ASF 2022 Tipping Comp.


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## Belli (1 January 2022)

It's investors money but not for long as I can guess who gets the most out of this ETF.  Betashares does have some rubbish products on offer in my opinion.


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## divs4ever (1 January 2022)

there is an article out there somewhere  that  explains why BBUS  and BBOZ  continually  leak money  because they use short-term derivatives to accomplish the aim ,  a  faster version  of an ETF  using oil or gold future contracts , if you like 

 i still hold some BBUS ( deeply underwater )  but have used BBOZ and BBUS in the past  with some success 

 now i won't go so far as to call them rubbish , but they have a specific goal  , and use a high risk method to  achieve  that aim , and you should understand  this needs strong  nerves and quick reflexes on the sell trigger  , BBUS and BBOZ   might be useful as a hedging ( insuring against a market plunge )  i tried them as a liquidity  buffer   when i suspect a market downturn ( an easily sold asset  that puts credit directly in the trading platform  , when the market is tumbling )  as a second option to relying on  a speedy transfer of cash from the cash reserve account ( which dives a small amount of interest every month ) there is always a tiny chance of banks freezing the accounts in the event of bank runs 

 please take extreme care  , there is  an ocean of debt out there  , and i am currently not buying any of it


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## Sean K (1 January 2022)

Logique2 said:


> I've included this one in my selections in the ASF 2022 Tipping Comp.




Bold pick for the yearly comp.


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## Logique2 (1 January 2022)

By way of explanation, I have 3 of 4 higher risk momentum plays in the 2022 tipping.
So BBUS is in context, a 'strong' bear hedge.
You have to weigh the risks.  It's not for everyone I agree..


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## frugal.rock (11 February 2022)




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## Logique2 (11 February 2022)

It's doing alright on a calendar year basis..nice volume in January..
Early days, but my best performer so far in the 2022  tipping!


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## grah33 (14 March 2022)

qldfrog said:


> Thanks for the info.
> I use bbus: but you can not keep these etf to hold for a while. In / out



u are referring to BBUS, but what about BEAR, does it also manufacture more units when it gets to a low value?  (glad i read your posts here ) and when do they change the number of units?


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## qldfrog (14 March 2022)

grah33 said:


> u are referring to BBUS, but what about BEAR, does it also manufacture more units when it gets to a low value?  (glad i read your posts here ) and when do they change the number of units?



Not sure..i use bboz and bbus for the extra leverage added.but interesting question indeed 
Anyone?


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## divs4ever (15 March 2022)

according to Commsec  , BEAR  has  a 75%  lending value ( LVR )


CODECOMPANYASSETAAABetaShares Aus High Interest Cash ETF58.19%--Spi 200 Futures Mar220.00%

 BBUS and BBOZ  do not have a lending value 

 so SEEM to consist of   cash and/or  a selected  market derivative  .. possibly cashed out daily 

 my GUESS is BEAR is a lot less eager to add units  as it would require generating more AAA  units  to be held as collateral ( but would probably add when really needed )


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## Logique2 (15 March 2022)

Well it's keeping me afloat in the 2022 Tipping!
Yes as you say, the LVR is 0%, which only makes sense as a leveraged instrument.


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## grah33 (15 March 2022)

divs4ever said:


> according to Commsec  , BEAR  has  a 75%  lending value ( LVR )
> 
> 
> CODECOMPANYASSETAAABetaShares Aus High Interest Cash ETF58.19%--Spi 200 Futures Mar220.00%
> ...





qldfrog said:


> Not sure..i use bboz and bbus for the extra leverage added.but interesting question indeed
> Anyone?



I actually was supposed to say BBOZ rather than BEAR.  It probably also adds units when it needs to


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## divs4ever (15 March 2022)

fairly easy to do if you are throwing cash at derivatives  ( and cashing them out a short period of time  later  )   for either BBOZ or BBUS 

 i am sure there are some regulations involved , but some PM ETFs  are only futures contracts as well  so must all be legal


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## Logique2 (6 May 2022)

Today BBUS is +29% on YTD ; 4 months into the year.

My ASF 2022 tips would look pretty sick without this ETF hedge.


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## pavilion103 (19 May 2022)

Anyone looking to get into this and hold? Volatility starting to come into the markets…


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## pavilion103 (1 June 2022)

People talk about the fees eroding profits. Can anyone give an idea of how much of an impact this has? It would be good to get a quantifiable understanding of this.


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## pavilion103 (1 July 2022)

Why is BBUS down 8.5% today when the US move didn’t correspond to this at all last night?


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## peter2 (1 July 2022)

Did you include the distribution (div) that was paid yesterday?


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## Iggy_Pop (29 September 2022)

My pick for stock tipping this month. With the US increasing interest rates and inflation still out of control, might be a dip in the market for a while yet. We need to see inflation reducing to turn the market around.

Iggy


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## peter2 (29 September 2022)

*BBUS* is a tricky one to trade short term as it's open when it's underlying market is closed. This creates the many opening gaps that we see on the chart. The open price includes the overnight price movement in the US market. If the US market has a down day then *BBUS* will gap up on the next open. *BBUS* can move a little more during its trading day if the US index futures move significantly during the ASX trading day.

Trading this profitably in the short term is an impossible task as we're always going to be a day late. We can get lucky by anticipating the US movement but this is gambling.

I'm currently trading *BBUS* to gain some experience in how to use it. I'm trading it with a bearish medium term outlook of the US markets. It's not a short term outlook. Since my bearish view is medium term (weeks/months) there's no need to be exact with the timing of my entries and exits. I'm allowed to be a day or two late with my execution.

I also think it may help to scale in and scale out of a position in *BBUS* and other US ETFs. Similar to dollar cost averaging in and then out. I didn't scale in with my current position and this has left me underexposed as the price went higher. I was concerned about timing it perfectly. I shouldn't have been concerned by this and just scaled in when I realised the opportunity was there. I've sold half to grab some of the gain and I'm waiting to either buy more if the US tanks again or sell out if the US continues to rally. My


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## Logique2 (2 January 2023)

Sticking with it again in the 2023 tipping.  It served me well in the 2022 down market. 
It is a geared instrument, hence should be treated with great care by stock holders.
There as a hedge again this year


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