Betashares has expanded its range of investment solutions with the launch of the Global Aggregate Bond Currency Hedged ETF (ASX: WBND).
WBND aims to track Bloomberg’s Global Aggregate Index (AUD Hedged), the flagship measure of global investment grade debt and the official performance test benchmark for superannuation funds for international fixed interest. As a result, the fund is suitable as a core fixed income building block, that provides exposure to an index that comprises over 30,000 treasury, government-related, corporate and securitised bonds from all over the world, covering more than 25 currencies and over 70 countries.
Betashares said for investors of all types, WBND offers an efficient, core fixed income building block for diversified portfolios across risk profiles. It’s also designed for better tax outcomes by electing to implement TOFA hedging – a specialised structure that aims to deliver more efficient after-tax outcomes and smoother cash distribution profiles to Australian investors.
Cash and fixed income ETFs have been topical for investors and financial advisers as central banks around the globe have entered a rate easing cycle, with more policy rate reductions expected in key markets. Over the financial year, cash and fixed income ETFs have received $9.9 billion in net flows, with Betashares the highest beneficiary of this elevated interest in the asset class by investors of all types. As inflation continues to ease and major central banks continue to cut interest rates, investor interest in fixed income is anticipated to continue to grow.
Betashares CEO, Alex Vynokur, said WBND is designed to be a convenient and cost-effective way to invest in a diversified portfolio of investment grade global bonds, tracking the official global fixed income benchmark for super funds.
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“Betashares has led the way in opening more parts of the fixed income universe with the provision of institutional grade investment solutions,” Mr Vynokur said. “We’re proud of our ability to offer high quality investment solutions that are designed for the unique needs of Australian investors and asset allocators.
“Our market leadership in cash and income ETFs allows us to leverage our scale and understanding of Australian investors to help them meet their wealth creation goals. To that end, WBND represents a core building block for Australian investors seeking exposure to a global portfolio of bonds. WBND is the only ETF that tracks the official APRA benchmark for the asset class and is constructed with more efficient after-tax outcomes, as well as smoother cash distribution profiles, for Australian investors in mind.”
