It’s great to see Betashares and Coolabah Capital changing with the times and improving HBRD to better reflect the market and its investments.
From 1 April 2026, Betashares Australian Hybrid Active ETF (ASX:HBRD) will be called Betashares Australian Credit Income Active ETF. The ASX code will stay the same.
HBRD’s hybrid allocation constituted just 10% of the portfolio as of 27 February 2026. Coolabah has progressively sold down expensive hybrids, generating profits for investors and investing the proceeds into subordinated and senior bonds, improving the ETF’s risk profile but keeping the yield close to the average major bank hybrid yield.
According to Chris Joye, portfolio manager at Coolabah Capital, the ETF will still focus on, ‘the full capital stack and relative value… with the capacity to find extra alpha from Asset Backed Securities and Residential Mortgaged Backed Securities’.
Other changes include:
- The fund will no longer aim to beat the Solactive Australian Hybrid Index and instead aim to beat the RBA cash rate plus 2%.
- Capacity to invest in ABS and RMBS.
- Up to 20% for AAA-rated RMBS
- Up to 25% invested in Australian bank foreign currency issuance, with the currency hedged back into Australian dollars. Joye aims to seek new issue concessions and monetise them, a strategy Coolabah employ for other strategies, which he claims makes money 90% of the time
- Removal of the 15.5% performance benchmark fee.
HBRD was always able to invest across the capital structure, and its core focus will continue to be high quality and monthly income.
Importantly, the fund will not invest in sub investment grade securities or private credit, instead trading to generate additional yield.
HBRD primarily invests in floating rate securities and hedges interest rates where it has exposure.
HBRD Summary
At the end of February 2026, HBRD held 166 securities with 55% of the portfolio held in subordinated bonds, 34.3% to senior bonds and 9.2% in hybrids or preference shares.
- Yield to maturity 5%
- Net running yield 5.29%
To learn more, register for a playback of Betashares’ webinar with Chris Joye and Chamath De Silva, Head of Fixed Income at Betashares.
