Australian Investment Grade Corporate Bond ETF
- Cash & Fixed income
Earn attractive income from Australian corporate bonds
Overview
Fund Objective
CRED aims to track the performance of an index (before fees and expenses) that provides intelligent exposure to a portfolio of senior, fixed-rate, investment grade Australian corporate bonds.
Fund Strategy
The Fund’s strategy will preference securities offering superior expected excess returns over Australian government bonds. Up to 50 bonds are selected, with eligible bonds requiring amounts outstanding of >$250m and a term to maturity of between 5.25 to 10.25 years.
Benefits of CRED
-
Attractive income paid monthly
Income is paid monthly at a rate expected to be higher than term deposits, government and composite bond exposures.
-
Diversification & defence
Australian corporate bonds historically have tended to rise when Australian shares have fallen, providing potential diversification and defensive benefits for portfolios.
-
Invest in bonds intelligently
CRED selects bonds based on expected returns rather than debt outstanding, seeking to avoid the shortcomings of traditional debt-weighted indices and provide higher returns.
There are risks associated with an investment in CRED, including interest rate risk, credit risk, market 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 you’d buy or sell 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* | $23.06 |
* As at 4 October 2024
Profile
| Net assets* ($A) | $898,951,047 |
|---|---|
| Units outstanding* (#) | 38,975,147 |
| Management fee and cost** (p.a.) | 0.25% |
| Distribution frequency | Monthly |
| Distribution reinvestment plan (DRP) | Full or partial participation available |
| Issuer | Betashares Capital Ltd |
| Registry | Link Market Services |
* As at 4 October 2024
* As of close of previous day**Certain additional costs apply. Please refer to PDS.
Trading information
| ASX code | CRED |
|---|---|
| Bloomberg code | CRED AU |
| IRESS code | CRED.AXW |
| Market makers | Susquehanna Pacific |
Index information
| Index | Solactive Australian Investment Grade Corporate Bond Select TR Index |
|---|---|
| Index provider | Solactive AG |
| Index ticker | N/A |
| Bloomberg index ticker | SOLAUSIG Index |
Portfolio characteristics
| Running yield (% p.a.) | 4.81 |
|---|---|
| Yield to maturity (% p.a.) | 5.48 |
| Yield to worst (% p.a.) | 5.47 |
| Average maturity (yrs) | 7.07 |
| Modified duration (yrs) | 5.70 |
| Average credit rating | BBB+ |
Holdings & allocation
Portfolio holdings
| Name | Weight (%) |
|---|---|
| REGISTRY FINANCE PTY LTD 5.739% JUN-34 | 3.1% |
| GPT WHL OFFICE FD NO1 3.222% NOV-31 | 2.3% |
| WESTCONNEX FINANCE CO PT 6.15% OCT-30 | 2.2% |
| AUSGRID FINANCE PTY LTD 5.408% MAR-31 | 2.2% |
| BP CAPITAL MARKETS PLC 5.439% AUG-34 | 2.2% |
| REGION RETAIL TRUST 5.55% MAR-31 | 2.2% |
| CHC FINANCE PTY LTD 3.092% APR-31 | 2.1% |
| AUSTRALIA PACIFIC AIRPOR 3.763% NOV-31 | 2.1% |
| ARC INFRASTRUCTURE WA 6.018% MAY-31 | 2.1% |
| CONNECTEAST FINANCE PTY 5.6% JUN-31 | 2.1% |
* As at 4 October 2024. Excludes cash
Sector allocation
| Real Estate | 32.0% |
|---|---|
| Industrials | 27.9% |
| Utilities | 14.0% |
| Communications | 8.0% |
| Consumer Staples | 6.0% |
| Consumer Discretionary | 4.0% |
| Banks | 6.0% |
| Non-bank lenders | 2.0% |
* As of 30 August 2024
Performance
Fund returns after fees (%)
| Fund | Index | |
|---|---|---|
| 1 month | 0.66% | 0.67% |
| 3 months | 4.31% | 4.37% |
| 6 months | 4.39% | 4.39% |
| 1 year | 12.75% | 12.67% |
| 3 year p.a. | -0.45% | -0.42% |
| 5 year p.a. | 0.80% | 1.11% |
| 10 year p.a. | - | 4.31% |
| Since inception | 3.10% | 3.40% |
| Inception date | 31-May-18 | - |
* As at 30 September 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
| Distribution frequency | Monthly |
|---|---|
| 12 mth distribution yield* | 4.7% |
*As at 30 August 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'.