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BetaShares UMAX fund awarded ‘Recommended’ rating by Lonsec

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Exchange-traded fund provider BetaShares has been awarded a ‘Recommended’ rating from Lonsec for its most recently launched fund, the BetaShares S&P 500 Yield Maximiser Fund (managed fund) (UMAX).

UMAX aims to provide investors with exposure to the stocks comprising the benchmark US Index, the S&P 500 Index, while providing regular income that exceeds the dividend yield of the stocks alone. It also aims to provide the potential for some capital growth and lower overall volatility than the Index. 
 
In order to develop its ratings, Lonsec reviews a fund manager’s investment process, people and resources, liquidity, fees, performance and the risk associated with the fund.
 
In its review of the fund, Lonsec noted that the fund’s fees compare favourably to other options for investors looking to access a ‘buy-write’ equity income strategy. In addition, it offers a convenient way for retail investors to access such a strategy, which is often only available to more sophisticated institutional and high net worth investors.
 
Alex Vynokur, BetaShares’ managing director, says the new ratings highlighted the effectiveness of the fund’s methodology, which had already proved successful with UMAX’s sister Australian equity income fund, the BetaShares Australian Top 20 Equity Yield Maximiser Fund (managed fund) (YMAX).
 
“UMAX offers investors exposure to US equities along with the potential for higher yield, a combination that is of growing interest among advisers and investors,” says Vynokur. “It’s great to see independent recognition of the UMAX strategy through a Lonsec rating.
 
“Our Australian income fund YMAX, which utilises a similar strategy, has been one of the fastest growing equity ETP on the ASX this year, and we expect a similar level of appeal for UMAX, which offers the added benefit of offshore diversification for Australian investor portfolios.”
 
In addition, UMAX is the first Australian domiciled exchange traded product to provide US-specific equity exposure, thus offering significant administrative benefits for Australian investors – there is no need for Australian investors to fill out US tax forms, known as W-8BEN forms, in order to qualify for reduced withholding tax on distributions; and no potential US estate tax implications that may arise when investing in US-listed products.
 
The fund joins the following BetaShares products which are also listed as ‘Recommended’ by Lonsec:
 
–     BetaShares FTSE RAFI Australia 200 ETF (QOZ)
–     BetaShares US Dollar ETF (USD)
–     BetaShares Gold Bullion ETF-Currency Hedged (QAU)
–     BetaShares Commodities Basket ETF-Currency Hedged (Synthetic) (QCB)
–     BetaShares Australian Top 20 Equity Yield Maximiser Fund (managed fund) (YMAX)

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