As yields reach a decade high, Betashares has launched a new low-cost fixed income ETF.
Trading under the ASX ticker COMP, Betashares’ Bloomberg AusBond Composite Index ETF aims to track the Bloomberg AusBond Composite 0+ Index, providing exposure to a diversified portfolio of domestic bonds, including Treasury, state government, government-related and corporate securities.
The Bloomberg AusBond Composite 0+ Yr Index is often referenced by superannuation funds, asset allocators, and active bond managers.
Betashares chief executive officer Alex Vynokur said, “COMP is purpose-built as a core fixed income holding for diversified portfolios, giving asset allocators, super funds, model portfolio managers, financial advisers and investors a cost-effective way to access the broad Australian investment grade bond market in a single trade.”
According to Betashares, the fund is now the lowest-cost Australian bond ETF listed on the ASX with a management fee of 0.07 per cent per annum.
Core fixed income portfolio building block
Betashares says COMP’s index provides exposure to around 900 investment-grade bonds across the Australian fixed income market, spanning government, government-related and corporate issuers, making it an efficient core building block for diversified portfolios.
The ETF joins Betashares existing Australian fixed income suite, including its enhanced index strategy OZBD, which manages approximately $1.25 billion and was also developed in partnership with Bloomberg.
