Having recently reviewed the book, The Australian ETF Guide by David Bassanese, I was intrigued by a conversation I had with Peter Moussa from Leveraged, a fully owned subsidiary of Bendigo and Adelaide Bank regarding leveraged ETFs.
Traditionally investors have borrowed to purchase property and paid cash for shares. I have found that the general consensus among authors of Australian share investment books is that borrowing to invest in shares increases your risk profile in what can be a volatile market. In addition the retail investor will have higher borrowing costs and may be subject to margin calls and strict rules of trading.
In his article, Peter presents an alternative means of leveraging into shares through the use of leveraged ETFs.
I hope you enjoy his article, Gearing: Shares Vs Property.
Glenis Phillips, F Fin
Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products. The article ‘Gearing: Shares Vs Property’ is the opinion of Peter Moussa and not necessarily that of Financial Mappers.