About the SUBD ETF
VanEck Vectors Australian Subordinated Debt ETF SUBD invests in a portfolio of subordinated bonds with the aim of providing investment returns before fees and other costs that track the performance of the index. The ETF is managed VanEck, pays monthly dividends and first traded in October 2019.
Subordinated bonds pay coupons (interest) that vary with short-term interest rates and interest rates are reset periodically resulting in reduced duration (interest rate risk). The higher risk associated with subordinated bonds means they pay a higher yield.
SUBD ETF Performance Review
Year
7.14
Year
3.09
Year
Inception
2.94
Yield
6.24
Maturity
5.97
Data Current To: 31/12/2023
Our review of SUBD ETF
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
What we like about the SUBD ETF
Monthly income
Minimal interest rate risk as the securities are floating rate.
Things to be aware of about the SUBD ETF
Long average term until maturity with approximately 60% of the portfolio maturing in more than seven years
Relatively high fees for a concentrated portfolio
Concentrated, only 25 holdings as at 31 December 2023
SUBD ETF Investment Strategy
Offering a higher yield relative to cash, term deposits and traditional bonds for a slightly elevated risk
SUBD ETF Share Price
What does the SUBD ETF Invest In?
SUBD is a Corporate Bond ETF.
SUBD ETF tracks the iBoxx AUD Investment Grade Subordinated Debt Mid Price Index. The Index is designed to reflect the performance of investment grade subordinated bonds denominated in AUD.
The index only includes AUD denominated floating rate bonds issued by financial institutions that qualify as Tier 2 Capital under APRA's Rules (or equivalent foreign rules), and which hold an iBoxx credit rating of investment grade.
As at 31 December 2023, the ETF had 25 different holdings including securities issued by ANZ Banking Group, Commonwealth Bank of Australia and Macquarie Bank.
SUBD ETF Credit Quality
The average credit quality of the SUBD ETF is BBB.
A detailed breakdown of the credit quality is expressed below.
SUBD Frequently Asked Questions
What index does the SUBD ETF aim to replicate?
How often does SUBD ETF pay distributions?
When did the SUBD ETF start?
What are the net assets of the SUBD ETF?
What are the number of holdings in the SUBD ETF?
What are the management fees for the SUBD ETF?
How can I invest in the SUBD ETF?
Does the SUBD ETF have a minimum investment amount?
Are there any performance fees associated with the SUBD ETF?
SUBD ETF News
- Follow The Money … (February 20th, 2024)
- Seven ETFs Where FUM Exceeds $1 billion (January 24th, 2024)
About The Issuer Of The SUBD ETF: VanEck
