Russell Investments RGB ETF (ASX:RGB)

Russell Investments Australian Government Bond ETF

About the RGB ETF

The RGB ETF is a fixed income focussed exchange traded fund which aims to track Australian Government Bonds and is managed by Russell Investments. The fund has about $90 million of investments and is designed to track the performance of of the DBIQ 5-10 year Australian Government Bond Index.

The DBIQ 5-10 years Australian Government Bond index is a fixed income index provided by Deutsche Bank. It is designed to provide investors with diversified and investable exposure to Australian Government fixed income securities.

The RGB ETF aims to provide exposure to the largest and most liquid Australian Government bonds as identified by certain eligibility criteria including minimum issuance size and term to maturity.

RGB ETF provides regularly re-weights its investments to ensure that the exposure is not biased towards any single bond. The fund commenced in 2012 and pays quarterly distributions.

RGB ETF Performance Review

1
Year

1.43

3
Year

5.43

5
Year

3.4

Since
Inception

4.74

Running
Yield

2.16

Yield To
Maturity

0.93

Data Current To: 31/08/2021

Our review of RGB ETF

The fund invests in the largest most liquid Commonwealth government bonds

Close to 100% exposure to fixed rate bonds, so is exposed to interest rate risk

What we like about the RGB ETF

Very high quality, low risk ETF with AAA credit rating

High running yield of over 2.15% as at 31 August 2021.

Things to be aware of about the RGB ETF

Only 10 investments

RGB ETF Investment Strategy

To track the performance of the index, which filters the largest and most liquid Commonwealth government fixed income securities and weights them equally upon reconstitution. Limited use of derivatives to obtain or reduce exposure to such securities.

RGB ETF Share Price

What does the RGB ETF Invest In?

RGB is a Government Bond ETF.

RGB ETF seeks to track the performance of the DBIQ 5-10 year Australian Government Bond Index by investing predominantly in Australian Government fixed income securities.

The index filters the largest and most liquid Commonwealth Government fixed income securities and weights them equally upon reconstitution. Derivatives may also be used to a limited extent to obtain or reduce exposure to such securities.

RGB ETF Credit Quality

The average credit quality of the RGB ETF is AAA.

A detailed breakdown of the credit quality is expressed below.

RGB Frequently Asked Questions

What index does the RGB ETF aim to replicate?

The RGB ETF aims to replicate the The Deutsche Bank DBIQ5-10 years Australian Government Bond Index.

How often does RGB ETF pay distributions?

The distribution frequency of RGB is Quarterly.

When did the RGB ETF start?

The inception date of the RGB ETF was 08/03/2012.

What are the net assets of the RGB ETF?

RGB has net assets of $89.88m (AUD) as of 31/08/2021.

What are the number of holdings in the RGB ETF?

Total number of holdings in RGB is 10 as of 31/08/2021.

What are the management fees for the RGB ETF?

The annual management fees for the RGB ETF are 0.24% p.a. Learn more about ETF fees in this article.

How can I invest in the RGB ETF?

RGB 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 RGB ETF have a minimum investment amount?

No, there is no minimum to invest in the Russell Investments RGB 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 RGB ETF?

No, RGB 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 RGB ETF: Russell Investments

Established in 1936, Russell Investments currently manage over $440 billion on behalf of institutions, advisers and the individuals they represent.

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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.