Key Highlights

• Annual distribution Yield of 4.52%, paid monthly at $0.065 per unit; fund size of $409.24 million

• Tracks the Markit iBoxx AUD Corporate Yield Plus Index; 195 holdings with 97.81% bond allocation

• Management fee of 0.32% per annum; Turnover ratio of 29.70%; Beta of 0.67 and Standard Deviation of 3.12

• Geographically diversified: Australia 65.35%, Germany 7.31%, France 6.53%, New Zealand 6.19%, United States 5.53%

The VanEck Australian Corporate Bond Plus ETF (ASX:PLUS) provides investors with exposure to Australian-dollar denominated investment-grade corporate bonds through a passive strategy tracking the Markit iBoxx AUD Corporate Yield Plus Total Return AUD Index. Listed on 11 May 2017, the fund has grown to $409.24 million in Assets with 24.70 million units outstanding, making it one of the larger corporate bond ETFs available on the ASX. PLUS offers access to the Credit spread premium embedded in investment-grade corporate Debt — a yield premium above Government Bonds that compensates investors for taking on the additional credit risk of corporate issuers.

Index and Investment Strategy

PLUS tracks the Markit iBoxx AUD Corporate Yield Plus Total Return AUD Index, which is designed to capture the yield premium available in the Australian-dollar corporate bond market. The fund employs a passive investment strategy, directly holding securities in the index with the aim of tracking its performance before fees. The "Yield Plus" designation in the index name signals an orientation toward higher-yielding corporate bond issues within the investment-grade spectrum, which contributes to the fund's 4.52% annualised distribution yield — a materially higher income level than comparable government bond ETFs. A turnover ratio of 29.70% reflects active index Rebalancing and the natural Maturity roll of bonds within the portfolio.

Portfolio Composition and Geographic Exposure

PLUS holds 195 individual corporate bonds. The top 10 positions represent 13.54% of the fund, reflecting broad Diversification across issuers. Notable holdings include Scentre Group Trust 1 at 1.63%, AusNet Services Holdings at 1.54%, Credit Agricole S.A. at 1.54%, Qantas Airways at 1.34%, Energie Baden-Wurttemberg International Finance at 1.33%, VanEck Cash Plus Active ETF (MONY) at 1.33%, Woolworths Group at 1.22%, Credit Agricole S.A. (second tranche) at 1.19%, Sydney Airport Finance at 1.19%, and Ausgrid Finance at 1.17%. The inclusion of MONY as a holding is notable — it represents the fund's Cash Management approach using the related VanEck short-duration product. Geographic exposure reveals meaningful international corporate issuer presence: Australia 65.35%, Germany 7.31%, France 6.53%, New Zealand 6.19%, the United States 5.53%, the United Arab Emirates 2.65%, Spain 2.45%, the United Kingdom 2.21%, Canada 0.74%, and South Korea 0.32%. The 2.19% cash allocation and 97.81% bond allocation confirm minimal operational cash drag.

Distribution Profile

PLUS is notable for the consistency of its monthly distributions. The fund has paid exactly $0.065 per unit in each of the five most recent months: May, June, July, August, and September 2026. This uniformity is uncommon in bond ETFs, where distributions typically vary with interest accruals, and may reflect a managed distribution policy or the precise nature of the underlying index's income generation. The annualised yield of 4.52% is competitive within the Australian corporate bond ETF space and compares favourably against government bond alternatives while remaining below the level of higher-risk credit or hybrid-focused products.

Risk Metrics and Total Returns

PLUS carries a beta of 0.67 and standard deviation of 3.12, reflecting a risk profile that sits between a pure government bond ETF and an Equity product. The lower beta relative to the broad bond benchmark reflects the credit spread component of corporate bonds, which does not move entirely in line with Interest Rate movements.