What is fixed income?

Fixed income covers several types of investment, including bonds and floating rate notes. All these products pay a regular income stream. Some pay a fixed rate of interest; others pay a floating rate. A fixed income investment can also provide a capital return (gain or loss), as its price is not fixed. Typically, however, the price of a fixed income investment will vary much less than the price of most shares

Fixed rate investment
A fixed rate investment pays a set rate of interest for the term of the investment. You know at the time you make the investment how much interest you will receive on each payment date. In the case of bonds, the interest payments are referred to as ‘coupons’.
Floating rate investment
A floating rate investment pays a rate of interest that varies in line with a benchmark interest rate. As interest rates change, the interest you receive also changes.

Benefits of fixed income in a portfolio

Regular and reliable income

Portfolio diversification

Relative capital stability

Betashares fixed income solutions

Betashares offers several funds that provide a simple, accessible and cost-effective way to add fixed income to your investment portfolio.

As with all Betashares funds, you can buy or sell units on the ASX using an online brokerage account or through a financial adviser.

Betashares Australian Investment Grade Corporate Bond ETF (ASX: CRED)

Betashares Australian Bank Senior Floating Rate Bond ETF (ASX: QPON)

Betashares Western Asset Australian Bond Fund (managed fund) (ASX: BNDS)

Betashares Australian Government Bond ETF (ASX: AGVT)

Betashares Sustainability Leaders Diversified Bond ETF – Currency Hedged (ASX: GBND)

Betashares U.S. Treasury Bond 20+ Year ETF – Currency Hedged (ASX: GGOV)

Betashares Australian Composite Bond ETF (ASX: OZBD)

Investing involves risk. The value of an investment and income distributions can go down as well as up. Before making an investment decision you should consider the relevant Product Disclosure Statement (available at www.betashares.com.au) and your particular circumstances, including your tolerance for risk, and obtain financial advice. An investment in any Betashares Fund should only be considered as a component of a broader portfolio