iShares Core Composite Bond ETF (ASX:IAF): Australia's Benchmark Bond Exposure

Sonal Goyal

01 September 2026 01:18 PM AEST

iShares Core Composite Bond ETF (ASX:IAF): Australia's Benchmark Bond Exposure

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Key Highlights

IAF is one of the largest funds reviewed by fund size, reported at $3.74 billion with 36,991,775 units outstanding.
The fund tracks the Bloomberg AusBond Composite 0+ Yr index and holds 744 companies, the highest count among the funds examined.
IAF's most recent distribution of $0.757 declined from $0.806 in the prior period.
Australia represented 86.70% of geographic exposure, among the highest domestic concentrations reviewed.

Fund Overview and Objective

IAF, listed on the ASX since 14 March 2012, falls under the Bonds - Australia category and seeks to track the Bloomberg AusBond Composite 0+ Yr Index. As one of the more established broad-market Australian bond ETFs, the fund carries a management fee of 0.10% per annum, among the lowest reported in this review, and had a fund size of $3.74 billion.

Portfolio Composition

IAF's asset allocation showed 97.00% in bonds and 3.01% in cash. The fund held 744 companies, the largest number among the funds covered in this review, with the top 10 holdings representing 22.20% of the portfolio and a Turnover ratio of 13.00%.

Leading holdings included several Australian Commonwealth Government Bonds ranging from 0.5% to 4.75% coupon, each representing between roughly 2.0% and 2.4% of the fund.

Geographic Exposure

Australia accounted for 86.70% of IAF's exposure, one of the higher domestic concentrations among the funds reviewed. Supranational issuers made up 4.44%, with smaller allocations to Canada (1.70%), the United States (1.05%), Germany (2.16%) and New Zealand (0.75%).

Distribution and Yield Profile

IAF reported an annual yield of 3.15% on a final distribution basis. The most recent distribution of $0.757 represented a decline from $0.806 in the prior period, which followed $0.769 before that and $0.858 further back, indicating a broadly declining distribution trend across the periods reported alongside some fluctuation.

Conclusion

IAF's scale, evidenced by its $3.74 billion fund size and 744 underlying holdings, positions it as one of the more broadly diversified Australian composite bond exposures reviewed, combining a low management fee with high domestic concentration. The recent decline in its distribution to $0.757 from $0.806 in the prior period is a relevant data point for those monitoring the fund's income trend, alongside its consistently high but not exclusive weighting to Australian government and semi-government debt.

FAQs

Q: What index does IAF track?

A:IAF tracks the Bloomberg AusBond Composite 0+ Yr Index.

Q: How many holdings does IAF have?

A:The fund held 744 companies at the time of the data reviewed, the highest among the funds covered in this review.

Q: Did IAF's distribution increase or decrease recently?

A:IAF's most recent distribution declined to $0.757 from $0.806 in the prior period.

Q: What is IAF's management fee?

A:The management fee is 0.10% per annum.

Q: What is IAF's fund size?

A:The fund's size was reported at $3.74 billion with 36,991,775 units outstanding.

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