VanEck Australian Subordinated Debt ETF (ASX:SUBD): Bank Subordinated Debt From 42 Issuers

Sonal Goyal

13 October 2026 06:15 PM AEDT

VanEck Australian Subordinated Debt ETF (ASX:SUBD): Bank Subordinated Debt From 42 Issuers

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Key Highlights

The fund holds 42 securities, with the top ten at 42.27% and led by Westpac and ANZ.
Bonds make up 97.94% of the portfolio, and Australia accounts for 85.10%.
The management fee is 0.29% and the fund size is $3.97 billion.
Monthly distributions have been $0.120 in each of the past five months.

VanEck Australian Subordinated Debt ETF (ASX:SUBD) employs a passive strategy of investing directly in a portfolio primarily made up of securities from its reference index, with the intention of replicating the index's risk profile and performance. The fund was admitted to the ASX on 30 October 2019 and last traded at $25.11 on 13 October 2026. It reports a fund size of $3.97 billion.

Detail	Information
Ticker	ASX:SUBD
Fund	VanEck Australian Subordinated Debt ETF
Category	Non Investment Grade Debt
Benchmark	iBoxx AUD IG Subdnt Debt TR AUD
Fund size	$3.97 billion
Management fee	0.29%
Total holdings	42
ASX admission date	30 October 2019

Issuer concentration

The ten largest positions account for 42.27% of the fund and are dominated by major banks. Westpac holds three of them (5.42%, 4.35% and 3.55%), ANZ Group Holdings 5.14%, Australia and New Zealand Banking Group 4.39%, Commonwealth Bank two (4.05% and 4.02%), National Australia Bank two (4.01% and 3.92%) and HSBC Holdings 3.38%.

Bonds represent 97.94% of the fund and cash 2.06%.

Geographic mix and classification

Australia accounts for 85.10% of the portfolio, the United Kingdom 10.13% and France 4.77%. The Australian weighting is well above the 36.77% category figure.

Morningstar places the fund in the Non Investment Grade Debt category, while the benchmark name refers to investment-grade subordinated debt, so the classification and the index label differ.

Fee, risk and distributions

The management fee is 0.29% a year. The fund reports a beta of 0.11 and a standard deviation of 0.74. SUBD pays monthly, and the interim distribution of $0.120 per unit had an ex-date of 1 October 2026, a record date of 2 October and payment on 16 October, equal to an annual yield of 5.47%.

The monthly amount has been $0.120 in October, September, August, July and June.

Category classification and liquidity

Morningstar places the fund in the Non Investment Grade Debt category, which covers funds investing primarily in Australian and/or global credit securities, typically with active credit selection aimed at higher returns than government bonds, where average credit quality is sub-investment grade and the category can include emerging-market debt, structured credit and unrated issues.

Liquidity indicators add a further view. There are 157,906,031 units on issue, and average daily trading volume is 275,491 units. Over the five sessions from 7 to 13 October 2026, daily volume ranged from 203,500 to 310,300 units, with 285,332 recorded on 13 October while the market was still open. The bid-offer range stood at $25.11 to $25.13, and the day range at $25.11 to $25.13. These figures change through the trading day and reflect market activity rather than the fund's holdings.

Recent announcements

The issuer published dividend component details on 8 October, Issued Units Outstanding as at 30 September 2026 on 7 October, Dividend Reinvestment Plan prices on 1 October, and the final distribution notice for the period ending 30 September on 30 September.

Final Takeaway

SUBD concentrates on bank subordinated debt, with large Australian banks making up most of its top ten. Its monthly distribution has stayed at $0.120 for five months, and its 0.29% fee applies to a $3.97 billion fund. These facts describe the structure and offer no forecast.

FAQs

Q: What does VanEck Australian Subordinated Debt ETF (ASX:SUBD) invest in?

A:It invests primarily in subordinated debt securities from its reference index, led by Australian banks.

Q: What is the management fee?

A:The management fee is 0.29% a year.

Q: How often does ASX:SUBD pay distributions?

A:It pays monthly, most recently $0.120 per unit payable on 16 October 2026.

Q: Who are the largest issuers?

A:Westpac, ANZ, Commonwealth Bank and National Australia Bank hold the largest positions.

Q: How many holdings does the fund have?

A:The fund holds 42 securities.

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