BetaShares CRED ETF (ASX:CRED)

BetaShares Investment Grade Corporate Bond ETF

About the CRED ETF

The CRED ETF provides investors with exposure to a portfolio of fixed-rate Australian corporate bonds and aims to track the performance of an index (before fees and expenses). The CRED ETF is managed by BetaShares and has net assets of around $1068.2 million as at 31 December 2024.

Bonds eligible for the CRED ETF must have amounts outstanding of at least $250 million and a term to maturity of between 5.25 to 10.25 years. Up to 50 bonds are selected with each bond assigned an equal weight as at each rebalance date while no single issuer will have a weight of more than 7% at each rebalance date. The CRED ETF is exposed to interest rate risk.

Income is paid monthly at a rate expected to be higher than term deposits, government and composite bond exposures.

CRED ETF Performance Review

7.07

0.53

1.15

3.06

5.63

Data Current To: 31/12/2024

Our review of CRED ETF

Senior, investment grade bonds with an average A- credit rating

The ETF consists of 100% fixed rate bonds and is exposed to interest rate risk

Eligible bonds must have at least $250 million and term to maturity of between 5.25 to 10.25 years

No single issuer will have a weight of more than 7% at each rebalance date

What we like about the CRED ETF

Bonds chosen by expected returns rather than debt outstanding

Good diversification by sector

Monthly income payments

Things to be aware of about the CRED ETF

Significant loss in 2022 but now offers a much higher yield to maturity

The portfolio has taken on more risk in the last year and its average rating is now BBB+

The portfolio takes interest rate risk

CRED ETF Investment Strategy

The Fund aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of investment grade fixed-rate Australian corporate bonds. Eligible bonds must have amounts outstanding of at least $250m and a term to maturity of between 5.25 to 10.25 years Up to 35 bonds are selected from eligible universe, with each bond assigned an equal weight as at each rebalance date.

What does the CRED ETF Invest In?

CRED is a Corporate Bond ETF.

The CRED ETF aims to track the performance of the Solactive Australian Investment Grade Corporate Bond Select TR Index by investing in corporate bonds from a range of different issuers. CRED ETF's top sector weightings are to Real Estate and Industrials with 33.4% and 31.3% respectively as at 31 December 2024.

CRED ETF Credit Quality

The average credit quality of the CRED ETF is BBB+.

A detailed breakdown of the credit quality is expressed below.

CRED Frequently Asked Questions

What index does the CRED ETF aim to replicate?

The CRED ETF aims to replicate the Solactive Australian Investment Grade Corporate Bond Select TR Index.

How often does CRED ETF pay distributions?

The distribution frequency of CRED is Monthly.

When did the CRED ETF start?

The inception date of the CRED ETF was 31/05/2018.

What are the net assets of the CRED ETF?

CRED has net assets of $1068.6m (AUD) as of 31/12/2024.

What are the number of holdings in the CRED ETF?

Total number of holdings in CRED is 58 as of 31/12/2024.

What are the management fees for the CRED ETF?

The annual management fees for the CRED ETF are 0.25% p.a. Learn more about ETF fees in this article.

How can I invest in the CRED ETF?

CRED is an Exchange Traded Fund, and units may be bought or sold on the ASX like shares. Learn how to buy and sell ETFs in this article.

Does the CRED ETF have a minimum investment amount?

No, there is no minimum to invest in the Betashares CRED ETF. Exchange Traded Funds in general do not have a minimum investment amount required by the issuer. However, if you choose to invest through a broker, they may choose to set their own minimum investment amount.

Are there any performance fees associated with the CRED ETF?

No, CRED has no performance fee. This is one of the advantages of Exchange Traded Funds, as they are traded like shares, you’ll generally only pay a commission to buy or sell units and an ongoing management fee.