iShares IAF ETF (ASX:IAF)

iShares Core Composite Bond ETF

About the IAF ETF

The IAF ETF provides exposure to a portfolio of investment grade fixed income securities issued by the Australian Treasury, Australian semi-government entities, supranational and sovereign entities and corporate entities. The IAF ETF aims to provide investors with the performance of the Bloomberg AusBond Composite 0+ Yr Index, before fees and expenses. The IAF ETF was established in 2012 and has net assets of more than $1.7 billion as at 8 October 2021.

IAF ETF Performance Review

1
Year

0.87

3
Year

4.35

5
Year

3.15

Since
Inception

4.5

Running
Yield

2.6

Yield To
Maturity

0.91

Data Current To: 31/08/2021

Our review of IAF ETF

Established fund predominantly investing in government bonds with some corporate exposure

The ETF is exposed to interest rate risk with circa 90% of the portfolio allocated to fixed rate bonds

What we like about the IAF ETF

Running yield benefits from purchasing government bonds when interest rates were higher

More than $1.78 billion held in the fund as at 8 October 2021

Things to be aware of about the IAF ETF

Average yield to maturity is less than 0.8% as at 19 January 2021

IAF ETF Investment Strategy

The fund aims to provide investors with the performance of the Bloomberg AusBond Composite 0+ Yr Index, before fees and expenses. The index is designed to measure the performance of the Australian bond market and includes investment grade fixed income securities issued by the Australian Treasury, Australian semi-government entities, supranational and sovereign entities and corporate entities

IAF ETF Share Price

What does the IAF ETF Invest In?

IAF is a Corporate Bond ETF.

The Fund generally invests in the investment grade fixed income securities issued by the Australian Treasury, Australian semi‐ government entities, supranational and sovereign entities and corporate entities that form the Index.

While it is intended that the securities invested in by the Fund will comprise investment grade issues, issues may be downgraded or the credit rating may be withdrawn in certain circumstances from time to time. In such event, the Fund may hold non‐investment grade issues until such time as such non‐investment grade issues cease to form part of the Index (where applicable) and it is possible and practicable (in the view of BlackRock) to liquidate the position.

The IAF ETF aims to provide investors with the performance of the Bloomberg AusBond Composite 0+ Yr Index, before fees and expenses. The index is designed to measure the performance of the Australian bond market. The IAF ETF is an established fund that predominantly invests in government bonds with some corporate exposure. The Treasury sector accounts for almost 60% of the IAF ETF's allocation.

IAF ETF Credit Quality

A detailed breakdown of the credit quality is expressed below.

IAF Frequently Asked Questions

What index does the IAF ETF aim to replicate?

The IAF ETF aims to replicate the Bloomberg AusBond Composite 0+ Yr Index.

How often does IAF ETF pay distributions?

The distribution frequency of IAF is Quarterly.

When did the IAF ETF start?

The inception date of the IAF ETF was 12/03/2012.

What are the net assets of the IAF ETF?

IAF has net assets of $1810.36m (AUD) as of 31/08/2021.

What are the number of holdings in the IAF ETF?

Total number of holdings in IAF is 531 as of 31/08/2021.

What are the management fees for the IAF ETF?

The annual management fees for the IAF ETF are 0.15% p.a. Learn more about ETF fees in this article.

How can I invest in the IAF ETF?

IAF 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 IAF ETF have a minimum investment amount?

No, there is no minimum to invest in the BlackRock IAF 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 IAF ETF?

No, IAF 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.

About The Issuer Of The IAF ETF: BlackRock

For more than 30 years, BlackRock has offered a range of solutions for institutions, financial professionals and individuals, to help them take control of their financial security.

Previous articleeInvest ECAS ETF (CHI-X:ECAS)
Next articleiShares IHEB ETF (ASX:IHEB)
Avatar
Luke is the Chief Technical Officer of Fixed Income News Australia and responsible for website design and development, including fund finder functionality. He has worked for ASX-listed industry leaders and a variety of marketing agencies across Australia. Luke is Head of Marketing at communications, content and creative agency RGC Media & Mktng, MBA News Australia and Online MBA Australia. He holds a Diploma of Creative Arts and is Google Accredited.