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
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.
Australian Investment Grade Corporate Bond ETF
Earn attractive income from Australian corporate bonds
Australian Bank Senior Floating Rate Bond ETF
Attractive income from floating rate bonds issued by Australian banks
Betashares Western Asset Australian Bond Fund (managed fund)
Attractive income from an actively managed portfolio of Australian bonds
Australian Government Bond ETF
Earn attractive income from Australian government bonds
Sustainability Leaders Diversified Bond ETF – Currency Hedged
A portfolio of high-quality bonds that meet stringent ethical standards
U.S. Treasury Bond 20+ Year ETF – Currency Hedged
Generate income and defend your portfolio with long-dated US Treasury bonds
Australian Composite Bond ETF
Attractive income from diversified Australian bonds