Key Highlights

• Management fee of 0.10% per annum; tracks the S&P/ASX iBoxx Australian Fixed Interest Diversified 0+ Index

• Annual distribution Yield of 4.11%, with quarterly distributions ranging from $0.097 to $0.263 per unit

• 267 total holdings; 96.66% bond allocation with 85.68% Australian geographic exposure

• Beta of 1.00 and Standard Deviation of 2.93

The State Street SPDR S&P/ASX iBoxx Australian Bond ETF (ASX:BOND) is a broad-based, passively managed fixed income ETF that provides investors with exposure to the Australian investment-grade Bond Market through the S&P/ASX iBoxx Australian Fixed Interest Diversified 0+ Total Return AUD Index. Listed on 27 July 2012, BOND has built a track record across multiple Interest Rate cycles. With a fund size of $51.37 million and 2.05 million units outstanding, it is a smaller-scale product compared to larger Australian bond ETFs such as IAF and VGB, though it remains accessible and offers a cost-efficient entry point to diversified domestic fixed income.

Benchmark and index Composition

BOND tracks the S&P/ASX iBoxx Australian Fixed Interest Diversified 0+ Total Return AUD Index, which targets the broad Australian investment-grade fixed income market with no minimum Maturity constraint. The index encompasses government, semi-government, corporate, and supranational bonds denominated in Australian dollars. A Turnover ratio of 42.23% is notably higher than some comparable bond ETFs — such as IAF at 13% — suggesting more frequent Rebalancing activity within the benchmark, which may reflect the index's construction rules and Liquidity filters. This higher turnover could marginally affect net performance through transaction costs.

Portfolio Composition and Holdings

BOND holds 267 individual fixed income securities. The top 10 positions account for only 11.62% of the fund, highlighting the diversified nature of the portfolio across government, corporate, and international issuers. Key holdings include Australian Commonwealth Government Loans (XCLWBR) at 1.72%, Australia (Commonwealth of) 3.75% at 1.55%, Australia (Commonwealth of) 4.75% at 1.22%, Toronto Dominion Bank Covered 09/28 at 1.14%, Australia (Commonwealth of) 1.25% at 1.02%, and corporate names including Treasury Corporation of Victoria 4.75% (0.99%), Contact Energy 6.398% (0.99%), Rabobank Australia 5.708% (0.98%), and National Australia Bank 5.4% (0.97%). Geographic exposure is 85.68% Australian, with New Zealand at 5.18%, Germany at 3.06%, Supranational issuers at 2.10%, the United States at 1.36%, the Netherlands at 0.94%, France at 0.60%, Canada at 0.48%, Indonesia at 0.48%, and Norway at 0.11%.

Distribution Profile

BOND distributes quarterly income. The most recent distribution was $0.263 per unit for the quarter ending July 2026, up from $0.259 in April 2026 and $0.258 in January 2026. The October 2025 distribution of $0.250 and the July 2025 distribution of $0.097 show a notable step-up in quarterly income between July 2025 and subsequent periods. The annualised yield of 4.11% is moderately attractive within the Australian bond ETF category, reflecting the fund's mix of government and Corporate Bond holdings. The higher yield relative to pure government bond ETFs such as VGB (3.31%) reflects the Credit spread contribution from the corporate and supranational components.

Risk Metrics and Market Alignment

BOND's beta of 1.00 and standard deviation of 2.93 align closely with the broad Australian bond market benchmark, consistent with the fund's passive, full-market exposure mandate. The 52-week range of $24.78 to $26.17 represents a spread of approximately 5.6%, illustrating the moderate interest rate sensitivity of the underlying portfolio across the full maturity spectrum.

Fund Size and Liquidity Considerations

With $51.37 million in assets, BOND is a smaller fund by ASX ETF standards, and average daily trading Volume of 3,180 units is relatively modest. The 5-day volume data shows variability — 13,100 on 15 September down to 1,100 on 17 September — which suggests limited day-to-day liquidity depth. Investors should be mindful of bid-offer spreads and the potential for price divergence from NAV during periods of low market activity. The wide bid-offer range observed on the most recent session ($23.00 to $25.01) further highlights the liquidity caution warranted for larger order sizes.

BOND offers broad exposure to the Australian investment-grade fixed income market at a highly competitive 0.10% management fee, matching some of the lowest-cost Options available on the ASX. The combination of government, semi-government, corporate, and supranational holdings across 267 positions provides meaningful portfolio diversification. The fund's more modest size and lower daily liquidity compared to IAF and VGB are factors to consider when assessing tradability, particularly for investors requiring larger allocations or frequent rebalancing. The quarterly yield of 4.11% and the positive total returns over three, six months, and one year make BOND a functional option for investors seeking broad Australian fixed income exposure at minimal cost, while the negative one-month return is a reminder that short-term Capital fluctuations remain present even in diversified bond funds.