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BetaShares launches S&P500 ETP

BetaShares has launched an ASX-traded fund aimed at providing exposure both to dividend yield and upside share price potential from the US S&P500 Index.

The BetaShares S&P500 Yield Maximiser Fund will trade under the ASX code UMAX with the objective of providing investors with regular income from the S&P500 Index that exceeds the dividend yield of the stocks alone.

BetaShares said the exchange-traded fund will also aim to provide lower volatility than the index.

The exchange-traded product (ETP) provider said the approach of the fund will be to “hold an investment portfolio providing exposure to the S&P 500Index and at the same time, sell some of the upside share price potential of the index in return for additional income”.

“The fund will not aim to track the S&P500 index,” said BetaShares.

According to BetaShares, the fund will be the first Australian-domiciled ETP on the ASX to provide US-specific equity exposure.


BetaShares managing director Alex Vynokur said the launch of UMAX will provide investors with further potential to enhance portfolio yields, as well as offering the additional diversification benefits of exposure to an overseas market.

“UMAX fills a gap for investors looking for US shares exposure that comes with the potential for greater yield, lower volatility and reduced downside risk compared to an investment in the shares alone,” said Mr Vynokur.

“For BetaShares, it also represents our first international equity offering and our 15th product overall.”