Betashares Wealthbuilder Nasdaq Geared Complex ETF (ASX:GNDQ)

GNDQ seeks to help investors build long-term wealth by providing moderately geared exposure to the returns of the Nasdaq 100.GNDQ combines investors’ money with borrowed funds and invests the proceeds in Betashares Nasdaq 100 ETF (ASX: NDQ), which aims to track the performance of the largest 100 non-financial companies listed on the Nasdaq (before fees and expenses). Gearing is managed internally within the Fund.The Fund’s gearing ratio (being the total amount borrowed expressed as a percentage of the total assets of the Fund) will generally vary between 30% and 40% on a given day.GNDQ does not aim to track an index.Gearing is the use of borrowed funds, in addition to your own, to increase the size of your investment. Gearing aims to generate magnified returns, but also increases risk, as losses are magnified too.The gearing ratio of between 30% and 40% means that GNDQ’s geared exposure is anticipated to vary between ~143% and 167% of its Net Asset Value on a given day. GNDQ’s portfolio exposure is actively monitored and adjusted to stay within this range.GNDQ’s returns will not necessarily be in this range over periods longer than a day, primarily due to the effects of rebalancing to maintain its daily target geared exposure range, the compounding of investment returns over time, and the impact of fees and costs.GNDQ’s returns over periods longer than one day may differ in amount and possibly direction from the daily target geared return range. This effect on returns over time can be expected to be more pronounced the more volatile the relevant sharemarket or portfolio and the longer an investor’s holding period.Due to the effects of rebalancing and compounding of investment returns over time, investors should not expect GNDQ’s Net Asset Value to be at a particular level for a given value of the relevant sharemarket or portfolio at any point in time.Investors should monitor their investment regularly to ensure it continues to meet their investment objectives.Gearing magnifies gains and losses and may not be a suitable strategy for all investors. Investors in geared strategies should be willing to accept higher levels of investment volatility and potentially large moves (both up and down) in the value of their investment. Geared investments involve significantly higher risk than non-geared investments. An investment in GNDQ is high risk in nature.