Australian Composite Bond ETF

OZBD

Attractive income from diversified Australian bonds

Invest with us

Overview

Fund objective

OZBD is designed to be a core portfolio allocation for fixed income. It aims to track the performance of an index (before fees and expenses) that provides exposure to a diversified portfolio of high-quality Australian corporate and government bonds selected on the basis of risk-adjusted income potential, while controlling for overall interest rate and credit risk.

Fund strategy

OZBD aims to track the Bloomberg Australian Enhanced Yield Composite Bond Index, before fees and expenses. This index takes an intelligent investment approach by weighting bonds on the basis of their risk-adjusted income potential rather than debt-weighting, and aims to provide investors with higher returns than the most commonly used Australian fixed income benchmark, the AusBond Composite Index (AusBond). OZBD aims to maintain an overall duration and credit profile that is similar to that of the AusBond index.

Benefits of OZBD

  • Attractive return potential

    Potential to deliver superior returns to both active and simple market cap-weighted passive approaches.

  • Intelligent approach to investing in bonds

    Bonds are selected based on their risk-adjusted income potential rather than debt outstanding, seeking to avoid the shortcomings of traditional debt-weighted indices and aiming to provide higher returns.

  • Focus on income

    OZBD focuses on bonds with high income potential – particularly pertinent in a rising yield environment.

There are risks associated with an investment in OZBD, including market risk, interest rate risk, credit risk and index tracking risk. Investment value can go up and down. An investment in the Fund should only be considered as a part of a broader portfolio, taking into account your particular circumstances, including your tolerance for risk. For more information on risks and other features of the Fund, please see the Product Disclosure Statement and Target Market Determination, both available on this website.

 

How to invest

  • You can buy or sell units just like any share on the ASX.
  • Fund requires no minimum investment.

Key facts

Pricing information

Current price
Last trade*
% Change (prev day)
Bid (delayed)
Offer (delayed)

* Data is delayed by at least 20 minutes.

NAV
NAV/Unit* $43.90

* As at 23 May 2024

Profile

Net assets* ($A) $379,976,017
Units outstanding* (#) 8,654,644
Management fee and cost** (p.a.) 0.19%
Issuer Betashares Capital Ltd
Registry Link Market Services

* As at 23 May 2024

* As of close of previous day
**Certain additional costs apply. Please refer to PDS.

Trading information

ASX code OZBD
Bloomberg code OZBD AU
IRESS code OZBD.AXW
Market makers Susquehanna Pacific

Index information

Index Bloomberg Australian Enhanced Yield Composite Bond Index
Index provider Bloomberg
Index ticker N/A
Bloomberg index ticker I36601AU Index

Portfolio characteristics

Running yield (% p.a.) 3.77
Yield to maturity (% p.a.) 4.87
Yield to worst (% p.a.) 4.85
Average maturity (yrs) 7.38
Modified duration (yrs) 5.91
Average credit rating AA
As at 24 May 2024

Holdings & allocation

Portfolio holdings

Name Weight (%)
AUSTRALIAN GOVERNMENT 1.5% JUN-31 1.9%
AUSTRALIAN GOVERNMENT 1.0% NOV-31 1.7%
AUSTRALIAN GOVERNMENT 1.25% MAY-32 1.7%
AUSTRALIAN GOVERNMENT 4.5% APR-33 1.5%
PROVINCE OF QUEBEC 5.25% MAY-34 1.5%
INTL FINANCE CORP 1.5% APR-35 1.3%
AUSTRALIAN GOVERNMENT 1.75% NOV-32 1.3%
AUSTRALIAN GOVERNMENT 3.75% MAY-34 1.2%
AUSTRALIAN GOVERNMENT 3.0% NOV-33 1.2%
AUSTRALIAN GOVERNMENT 2.5% MAY-30 1.1%

* As at 23 May 2024. Excludes cash

Sector allocation

Australian Govt
24.0%
Australian State Government
15.5%
Corporate - Financial
15.5%
Corporate - Non Financial
14.9%
Supranational
14.0%
Government Special Purpose Bank
8.4%
Sovereign Agency
4.7%
Foreign Local Authority
2.9%

* As of 30 April 2024

Performance

Fund returns after fees (%)

  Fund Index Bloomberg AusBond Composite
1 month -2.21% -2.21% -1.98%
3 months -1.18% -1.15% -1.18%
6 months 6.07% 6.14% 4.71%
1 year -0.20% -0.08% -0.73%
3 year p.a. - -2.61% -2.13%
5 year p.a. - -0.19% -0.29%
10 year p.a. - 2.91% 2.29%
Since inception (p.a.) -2.83% -2.71% -2.29%
Inception date 2-Feb-22 - -

* As at 30 April 2024.
Past performance is not an indicator of future performance. Returns are calculated in Australian dollars using net asset value per unit at the start and end of the specified period and do not reflect brokerage or the bid ask spread that investors incur when buying and selling units on the ASX. Returns are after fund management costs, assume reinvestment of any distributions and do not take into account tax paid as an investor in the Fund. Returns for periods longer than one year are annualised. Current performance may be higher or lower than the performance shown.

Chart

Past performance is not indicative of future performance. Please refer to "Fund returns after fees" for additional information regarding performance/return information.

Distributions

Yield information

12 mth distribution yield* 3.8%

*As at 30 April 2024. Yield is calculated by summing the prior 12-month per unit distributions divided by the closing NAV per unit at the end of the relevant period. Yield will vary and may be lower at time of investment. Past performance is not indicative of future performance.

You can elect DRP by logging into Link’s Investor Centre. Once you are logged in, please proceed to the 'Payments and Tax' tab and select ‘Reinvestment Plans'.

Recent distributions

Ex Date Record Date Payment Date Distribution Unit ($) Annual Distribution Return (%) (1)
1-May-24 2-May-24 16-May-24 $0.153341 3.76%
2-Apr-24 3-Apr-24 17-Apr-24 $0.133851 3.79%
1-Mar-24 4-Mar-24 18-Mar-24 $0.13751 3.87%
1-Feb-24 2-Feb-24 16-Feb-24 $0.155427 3.82%
2-Jan-24 3-Jan-24 17-Jan-24 $0.137809 3.90%
1-Dec-23 4-Dec-23 18-Dec-23 $0.137676 3.67%
1-Nov-23 2-Nov-23 16-Nov-23 $0.144919 3.63%
2-Oct-23 3-Oct-23 17-Oct-23 $0.125924 3.70%
1-Sep-23 4-Sep-23 18-Sep-23 $0.136145 3.71%
1-Aug-23 2-Aug-23 16-Aug-23 $0.136413 3.57%
3-Jul-23 4-Jul-23 18-Jul-23 $0.131901 3.62%
1-Jun-23 2-Jun-23 19-Jun-23 $0.14761 3.55%
1-May-23 2-May-23 16-May-23 $0.127953 3.48%
3-Apr-23 4-Apr-23 20-Apr-23 $0.141509 3.31%
1-Mar-23 2-Mar-23 16-Mar-23 $0.123648 3.16%
1-Feb-23 2-Feb-23 16-Feb-23 $0.144313 -
3-Jan-23 4-Jan-23 18-Jan-23 $0.132308 -
1-Dec-22 2-Dec-22 16-Dec-22 $0.134235 -
1-Nov-22 2-Nov-22 16-Nov-22 $0.134972 -
3-Oct-22 4-Oct-22 18-Oct-22 $0.12184 -
1-Sep-22 2-Sep-22 16-Sep-22 $0.13792 -
1-Aug-22 2-Aug-22 16-Aug-22 $0.121874 -
1-Jul-22 4-Jul-22 18-Jul-22 $0.095833 -
1-Jun-22 2-Jun-22 17-Jun-22 $0.106562 -
2-May-22 3-May-22 17-May-22 $0.100417 -
1-Apr-22 4-Apr-22 20-Apr-22 $0.194167 -

1 This is the annual distribution return to the end of the relevant distribution date. The distribution return reflects the contribution to total investment return made by the Fund's distributions. Distribution return is calculated as the total return less the growth return. Total return is calculated as the percentage change in a continuing investor's interest in the Fund assuming reinvestment of all distributions back into the Fund (and no other application or withdrawal), net of ongoing fees. Growth return is the Fund's return excluding distributions, net of ongoing fees. Past performance is not indicative of future performance

Announcements

ASX announcements: OZBD

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