| BHP | BHP Group Ltd | 9.97% |
|---|---|---|
| CBA | Commonwealth Bank of Australia | 8.06% |
| CSL | CSL Ltd | 6.86% |
| NAB | National Australia Bank Ltd | 4.77% |
| WBC | Westpac Banking Corp | 3.67% |
| CODE | COMPANY | ASSET |
|---|---|---|
| ANZ | Australia and New Zealand Banking Group Ltd | 3.30% |
| WDS | Woodside Energy Group Ltd | 3.13% |
| MQG | Macquarie Group Ltd | 3.10% |
| WES | Wesfarmers Ltd | 2.58% |
| TLS | Telstra Corp Ltd | 2.23% |
The ASX remains stuck in its range. It's Sept and the seasonal weakness has started. I've started to accumulate GEAR in a conservative portfolio that I tend to let sit without much activity. I hoping that the weakness continues and I can buy more GEAR near the lows of this range. I'll buy a little at every dollar level. Now at 24, then at 23, 22 etc. If the markets sells off quickly then I'll try to time the bottom.
My underlying reason is that the world still requires our resources. They may not need to buy them now but eventually they must. Plus they're getting great value with the AUD so low.
well GEAR as the name implies is leveragedIs there a comparison to be made between IOZ and GEAR? IOZ is currently my biggest ETF holding and want to keep adding but don't want to put all my Super eggs in one basket. Is this just the same basket?
well GEAR as the name implies is leveraged
now since i do not hold either GEAR or IOZ i am not sure whether either has a DRP
and a DRP would put an extra tweak into any accumulation plan
but according to the fact sheetsheets GEAR and IOZ are close to identical baskets except one adds a gearing component ( and a hefty fee for doing so )
Beware beware do not even think about staying long term in either gear or bboz. They are both short term plays, I use (d) but there is a slow grinding effect eating at the value on a medium long term play..so gearat least is not time in but timing.I DRP IOZ. Will check the fees on GEAR. I have a feeling they'd be same same and it just depends on entry points to squeezing out any additional winnings. Or, in the long run, it's time in, not timing.
To add to the above, has been discussed before, but it is structural so yes, play with these but not as long term investment ...Beware beware do not even think about staying long term in either gear or bboz. AllThey are both short term plays, I use (d) but there is a slow grinding effect eating at the value on a medium long term play..so gearat least is not time in but timing.
Not sure about ioz as I never used it
To add to the above, has been discussed before, but it is structural so yes, play with these but not as long term investment ...
BBOZ absolutely as a short-term play ( i used these successfully between September 2019 and March 2020 ) but have resisted sinceBeware beware do not even think about staying long term in either gear or bboz. They are both short term plays, I use (d) but there is a slow grinding effect eating at the value on a medium long term play..so gearat least is not time in but timing.
Not sure about ioz as I never used it
Yes a VAS or similar for long term.Well, I'm looking to park my super in some super, so this might not be for me. More research needed. Thanks.
for GEAR i was hoping to buy/add in a reasonable downtrend and let the DRP work it's magic , but the six-monthly divs ( compared to 3 monthly by some ungeared rivals ) might remove the shine off that theoryYes a VAS or similar for long term.
If you have time, chart Gear vs ASX on a couple of years window and I expect you to see what I mean even on a flat market.
Betashares estimated distributions have been released today. XD date is Jan 2, 2024. Paid 17th Jan, 2024
GEAR ~ 0.555 $/unit - paid semi-annual
URNM ~0.01
NO !Hi can someone explain why GEAR has a franking rate of 789% for the div just gone?
The two before that were 195% and 284% so don't think there is an error there.NO !
i strongly suspect an error in calculation ( surely they don't leverage 5X )
especially when i noticed the low franking on A200 in the same announcement
over 100% when you leverage sure , but over 700% that will scare ATO
well when you are leveraging the holding say at 3 times you would receive three times the usual franking creditsThe two before that were 195% and 284% so don't think there is an error there.
| CODE | COMPANY | ASSET |
|---|---|---|
| BHP | BHP Group Ltd | 9.71% |
| CBA | Commonwealth Bank of Australia | 8.50% |
| CSL | CSL Ltd | 6.03% |
| NAB | National Australia Bank Ltd | 4.62% |
| WBC | Westpac Banking Corp | 4.03% |
| CODE | COMPANY | ASSET |
|---|---|---|
| ANZ | ANZ Group Holdings Ltd | 3.73% |
| WES | Wesfarmers Ltd | 3.29% |
| MQG | Macquarie Group Ltd | 3.05% |
| WDS | Woodside Energy Group Ltd | 2.51% |
| GMG | Goodman Group | 2.25% |
| CODE | COMPANY | ASSET |
|---|---|---|
| BHP | BHP Group Ltd | 9.76% |
| CBA | Commonwealth Bank of Australia | 8.57% |
| CSL | CSL Ltd | 5.98% |
| NAB | National Australia Bank Ltd | 4.68% |
| WBC | Westpac Banking Corp | 4.04% |
| CODE | COMPANY | ASSET |
|---|---|---|
| ANZ | ANZ Group Holdings Ltd | 3.79% |
| WES | Wesfarmers Ltd | 3.38% |
| MQG | Macquarie Group Ltd | 3.19% |
| GMG | Goodman Group | 2.57% |
| WDS | Woodside Energy Group Ltd | 2.34% |
Maybe, but before these last three divs they were all below 100%well when you are leveraging the holding say at 3 times you would receive three times the usual franking credits
Betashares describes GEAR as
The fund will seek to achieve this objective by combining application money from investors with borrowed funds, and investing the proceeds in a broadly diversified share portfolio generally consisting of approximately 200 of the largest equity security on the ASX, weighted by their market capitalisation.
or in layman's term a top 200 index fund that is then leveraged
the top 10 holdings
Top 10 Holdings
CODE COMPANY ASSET BHP BHP Group Ltd 9.71% CBA Commonwealth Bank of Australia 8.50% CSL CSL Ltd 6.03% NAB National Australia Bank Ltd 4.62% WBC Westpac Banking Corp 4.03%
CODE COMPANY ASSET ANZ ANZ Group Holdings Ltd 3.73% WES Wesfarmers Ltd 3.29% MQG Macquarie Group Ltd 3.05% WDS Woodside Energy Group Ltd 2.51% GMG Goodman Group 2.25%
not astoundingy different to A200
top ten holdings
4.71%
Top 10 Holdings
Top 10 Holdings
CODE COMPANY ASSET BHP BHP Group Ltd 9.76% CBA Commonwealth Bank of Australia 8.57% CSL CSL Ltd 5.98% NAB National Australia Bank Ltd 4.68% WBC Westpac Banking Corp 4.04%
CODE COMPANY ASSET ANZ ANZ Group Holdings Ltd 3.79% WES Wesfarmers Ltd 3.38% MQG Macquarie Group Ltd 3.19% GMG Goodman Group 2.57% WDS Woodside Energy Group Ltd 2.34%
the major difference is GEAR is leveraged
A200 seems to be paying 31.8% franking while GEAR seems to be paying 789.09% in franking credits
GEAR pays distributions 6 monthly , A200 pays 3 monthly and we are talking the same ETF issuer so we are talking stable-mates
the discrepancy seems rather wide ( even if you halved GEAR to measure in 3 monthly time spans )
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