Key highlights

  • ASX:FSUB aims to track the iBoxx AUD Fixed Investment Grade Subordinated Debt Index in Australian dollars.
  • Bonds make up 99.15% of the portfolio, and Australia accounts for 83.11%.
  • The fund has about $120.73 million in assets and a 0.29% management fee.

The VanEck Australian Fixed Rate Subordinated Debt ETF (ASX:FSUB) gives investors exposure to fixed-rate subordinated bonds, a layer of debt that ranks below senior debt in an issuer’s capital structure. The fund aims to provide investment returns, before fees and other costs, that track the performance of its reference index in Australian dollars.

About the Fund

FSUB was admitted to the ASX on 12 December 2025 and is classified in the Diversified Credit category. Its benchmark is the iBoxx AUD Fixed Investment Grade Subordinated Debt Mid Price Index. The fund has about $120.73 million in assets, and the management fee is 0.29%.

Country exposure

The largest country allocation is Australia at 83.11%, followed by France at 7.27%. The remaining exposure is spread across the United Kingdom (6.98%), South Korea (1.04%), the Netherlands (0.98%) and Spain (0.63%).

By asset type, bonds make up 99.15% of the fund and cash 0.85%.

Portfolio holdings

The portfolio holds 52 companies, with top ten holdings making up 38.92% of the fund. The largest positions are Commonwealth Bank of Australia bond (4.87%), Australia and New Zealand Banking Group bond (4.83%), Westpac Banking Corporation bond (4.06%), National Australia Bank bond (3.81%) and Commonwealth Bank of Australia bond (second issue) (3.79%).

All of the top ten positions are bonds issued by Australia’s major banks, with Westpac appearing four times, Commonwealth Bank and National Australia Bank twice each and ANZ twice, which spreads the exposure across different bond issues.

Understanding the exposure

The five largest positions add up to 21.36% of the fund, which shows how much of the exposure rests on a small number of names. The remaining 42 holdings share the other 61.08% of the portfolio, an average of about 1.45% each. Exposure is spread across 6 countries or regions, and the three largest allocations (Australia, France and the United Kingdom) together account for 97.36% of the portfolio.

Fees, size and distributions

FSUB pays distributions monthly, and its recent monthly distributions have each been $0.120 per unit. The most recent had an ex-date of 1 October 2026 and payment on 16 October 2026.

Fund structure and reporting

FSUB has an ISIN of AU0000432668 and a head office at Level 12, Suite 1, 60 Castlereagh Street, Sydney. Recent ASX announcements from the fund include dividend component details, distribution reinvestment plan prices, a final distribution notice and the annual report for the year ended 30 June 2026.

Diversified Credit funds invest in Australian and/or global credit securities and typically focus on active credit selection to deliver higher returns than government bonds. While they can invest in sub-investment grade and unrated issues, the average credit quality of such funds is typically BBB or above.

Units in FSUB are quoted on the ASX and can be bought and sold through a broker during trading hours, in the same way as shares, so the exposure described above is available without buying each holding separately. The fund follows a rules-based index, so its holdings and weightings are set by the index methodology and adjusted when the index is rebalanced.