VanEck Vectors Australian Subordinated Debt ETF

    ASX: SUBD

    Performance

    1
    Year

    2.53

    3
    Year

    5
    Year

    Since Inception

    2.55

    Running Yield

    2.13

    Yield To Maturity

    1.41

    Data Current To: 31/12/2020

    Information

    Issuer:
    Sector:
    Index:
    iBoxx AUD Investment Grade Subordinated Debt Index
    Inception Date: 28/10/2019
    Strategy: Offering a higher yield relative to cash, term deposits and traditional bonds for a slightly elevated risk

    Details

    Management Costs: 0.29% p.a.
    Income Distribution: Monthly
    Net Assets: $124.7m (AUD)
    Number of Holdings: 17

    Sector Distribution

    Credit Quality

    FINA Comments

    Key Features

    Invests in a portfolio of investment grade subordinated bonds, over 90% allocation to banks and the balance insurance companies

    Only invests in AUD denominated floating rate bonds issued by financial institutions that qualify as Tier 2 Capital under APRA's Rules (or equivalent foreign rules)

    Short duration with virtually no interest rate risk

    Positives Negatives

    Monthly income

    Long average term until maturity with 80% of the portfolio maturing in more than seven years

    Concentrated, only 17 holdings