Key Highlights

  • CRED holds a $1.84 billion portfolio spread across 62 companies, with the top ten holdings representing 22.71 percent of the fund.
  • September's distribution of $0.112 per unit eased slightly from $0.114 in August, following a rising trend earlier in the year.
  • Geographic exposure spans Australia, Germany, the United Arab Emirates and several European markets, reflecting the fund's international Credit selection.

The Betashares Australian Investment Grade Corporate Bond ETF (ASX:CRED) provides exposure to a diversified pool of investment grade credit securities, sitting within the Diversified Credit category on the ASX and carrying a fund size of $1.84 billion as at the latest reporting date.

Fund Structure and Holdings

CRED employs a passive management approach designed to track the performance of the Solactive Australian Investment Grade Corporate Bond Select index before fees and expenses, generally investing in securities in proportion to their index weightings. The fund's portfolio spans 62 companies, with the top ten holdings accounting for 22.71 percent of the total and a Turnover ratio of 43.22 percent. Notable holdings include bonds from Emirates NBD, Aroundtown SA, Stockland Trust Management, Aurizon Network, Vonovia SE, E.ON SE and Scentre Group Trust, with individual weightings ranging from approximately 2.1 percent to 2.8 percent.

Distribution Trend

The fund declared an interim distribution of $0.112 per unit, translating to an annual Yield of 5.48 percent, with an ex-date of 1 September 2026 and a payment date of 16 September 2026. Tracking the recent distribution sequence, CRED paid $0.099 in May, $0.096 in June, $0.108 in July, $0.114 in August and $0.112 in September, indicating a slight easing in the most recent month following several months of increases.

Geographic and Asset Exposure

The portfolio allocates 98.74 percent to bonds and 1.26 percent to cash, with no stock or other asset exposure reported. Geographically, Australia represents the largest allocation at 69.67 percent, followed by Germany at 13.35 percent, New Zealand at 5.20 percent, the United Arab Emirates at 3.87 percent, France at 3.11 percent, the United States at 2.35 percent, and smaller allocations to Spain, Canada, the Netherlands and Singapore.

CRED sits within the Diversified Credit category, which covers funds investing in Australian and global credit securities with an emphasis on active credit selection aimed at generating returns above government bond yields. While the category permits exposure to sub-investment grade and unrated issues, the average credit quality across such funds typically sits at 'BBB' or higher, as rated by a recognised credit ratings agency.

Who Should Watch CRED

Analysts covering Australian corporate credit markets, along with investors comparing domestic investment grade exposure against international issuers included in the fund's portfolio, may find CRED relevant to their coverage. Those interested in how offshore property and utility-sector debt, such as holdings from Aroundtown and E.ON, Factor into an Australian-domiciled bond ETF could also find the fund's composition worth monitoring.

Conclusion

CRED's portfolio reflects an approach to investment grade credit that extends beyond purely domestic issuers, incorporating a meaningful allocation to German, UAE and other international names alongside a core of Australian corporate debt. The fund's recent distribution figures show a slight pullback in the latest month after a period of increases, while the unit price remains below its 52-week high.