Betashares Interest Rate Hedged Aus Corp Bond ETF (ASX:HCRD): Corporate Credit With Duration Protection

Sonal Goyal

01 September 2026 01:18 PM AEST

Betashares Interest Rate Hedged Aus Corp Bond ETF (ASX:HCRD): Corporate Credit With Duration Protection

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Key Highlights

HCRD invests 100% of its portfolio into CRED, the Betashares Australian Investment Grade Corporate Bond ETF, while applying an Interest Rate hedge.
The fund reported an annual Yield of 4.92%, with distributions rising from $0.106 in June to $0.120 in September.
HCRD's geographic exposure mirrors its underlying holding, with Australia at 71.58% and Germany at 13.44%.
The fund was admitted to the ASX on 16 November 2022 and carries a management fee of 0.29% per annum.

Fund Overview and Objective

HCRD seeks to track the Solactive Australian Investment Grade Corporate Bond Select DH Index, which applies a duration-hedging overlay to the same underlying Credit exposure held by CRED. Listed under the Diversified Credit category, the fund's approach is designed to reduce sensitivity to interest rate movements while retaining exposure to Australian investment-grade corporate credit.

Portfolio Structure

HCRD's only reported holding is CRED itself, representing 100.00% of the fund's assets. Asset allocation showed 98.62% in bonds and 1.39% in cash, closely mirroring the composition of its underlying holding.

Geographic Exposure

Reflecting its pass-through structure, HCRD's country exposure closely tracks that of CRED, led by Australia at 71.58%, followed by Germany at 13.44% and New Zealand at 5.07%. Smaller exposures were reported to the United Arab Emirates (3.86%), the United States (2.17%) and France (2.15%).

Distribution and Yield Profile

HCRD reported an annual yield of 4.92%, with distributions increasing from $0.050 in May to $0.106 in June, $0.102 in July, $0.113 in August and $0.120 in September. The most recent ex-date, Record Date and payment date were 1 September, 2 September and 16 September 2026 respectively.

Conclusion

HCRD offers a structurally distinct route into the same investment-grade Australian corporate bond exposure held by CRED, with the added feature of an interest rate hedge intended to dampen the effect of rate movements on the fund's price. Distribution figures across the period reviewed followed a broadly rising pattern, and the fund's yield of 4.92% sat above that of its underlying unhedged counterpart, reflecting differences in the hedge overlay's impact on income distribution.

FAQs

Q: What does HCRD invest in?

A:HCRD invests 100% of its assets into CRED, the Betashares Australian Investment Grade Corporate Bond ETF, while applying an interest rate hedge.

Q: What index does HCRD track?

A:The fund tracks the Solactive Australian Investment Grade Corporate Bond Select DH Index.

Q: What is HCRD's annual yield?

A:The fund reported an annual yield of 4.92%.

Q: When was HCRD listed on the ASX?

A:HCRD was admitted to the ASX on 16 November 2022.

Q: What is HCRD's management fee?

A:The management fee is 0.29% per annum.

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