Key Highlights

• Management fee of 0.15% per annum, one of the lowest in the Australian Government Bond ETF category

• Tracks the Bloomberg AusBond Govt 15+ Year Index; 100% exposure to Australian government and semi-government bonds

• Fund size of $292.44 million with 3.19 million units outstanding

• Beta of 2.20 and Standard Deviation of 6.74, reflecting significantly elevated Interest Rate sensitivity relative to broad bond ETFs

The iShares 15+ Year Australian Government Bond ETF (ASX:ALTB) offers investors a concentrated exposure to the long end of the Australian government bond yield curve. Admitted to the ASX on 13 June 2024, the fund tracks the Bloomberg AusBond Govt 15+ Year Total Return AUD Index, which specifically targets Australian Commonwealth and semi-government bonds with remaining maturities of 15 years or more. As a result, ALTB occupies a distinct position within the fixed income ETF landscape — one characterised by elevated duration, amplified interest rate sensitivity, and a return profile that moves inversely and substantially with movements in long-term yields.

Benchmark and Focus

The Bloomberg AusBond Govt 15+ Year index is a targeted sub-index of the broader Australian government bond market, selecting only those bonds with the longest remaining maturities. This 15-year-plus Maturity threshold means the portfolio carries significantly higher duration than the composite AusBond index, making ALTB one of the longest-duration fixed income products available in the Australian ETF market. The fund holds 100% of its Assets in Australian government and semi-government bonds, with no Credit risk from corporate issuers. The fund achieves its objective purely through passive replication of the index.

Portfolio Composition

ALTB holds 19 individual bond lines, with the top 10 representing 95.14% of the fund. The largest positions include Australian Commonwealth Government Loans (27.06%), followed by a Commonwealth of Australia 3% bond (24.77%) and a Commonwealth of Australia 1.75% bond (24.29%). State Government Bonds from Victoria and Queensland complete the remaining significant allocations: Treasury Corporation of Victoria 6% (3.99%), Treasury Corporation of Victoria 2.25% (3.82%), Queensland Treasury Corporation 2.25% (3.13%), Treasury Corporation of Victoria 2.4% (2.38%), Queensland Treasury Corporation 4.2% (2.24%), and Treasury Corporation of Victoria 2.25% (1.61%). Geographic exposure is entirely within Australia at 100%, reflecting the pure domestic government mandate. The asset allocation is 99.99% bonds and 0.01% cash.

Distribution Profile

ALTB distributes income quarterly. The most recent distribution was $1.042 per unit for the July 2026 quarter, the highest recorded in the available dataset. Prior quarterly distributions were $0.654 for April 2026, $0.644 for January 2026, $0.786 for October 2025, and $0.678 for July 2025. The annualised yield of 3.41% is consistent with the coupon income embedded in long-duration Australian government bonds. The relatively low yield compared to Corporate Bond ETFs reflects the sovereign credit quality of the underlying holdings, which carry no credit spread above the risk-free rate. Note that the Capital component of ALTB's total return can be substantially positive or negative depending on interest rate movements, which may overshadow the income yield in any given period.

Risk Metrics and Duration Sensitivity

ALTB's risk profile is materially different from most bond ETFs available on the ASX. The beta of 2.20 indicates that the fund moves approximately twice as much as a broad Bond Market benchmark in response to interest rate shifts. The standard deviation of 6.74 is more than double that of broad composite bond ETFs such as IAF. The 52-week range of $89.51 to $102.11 illustrates the scale of price movement that long-duration investors must accept: a range of over 14% in a single year from peak to trough. These characteristics make ALTB a high-conviction, directional instrument for investors who hold a specific view on long-term interest rate direction, rather than a general-purpose income product.

Total Returns and Performance Context

All measured total return periods for ALTB are negative based on available data: -1.20% over one month, -2.43% over three months, -3.52% over six months, and -2.94% over one year. These declines reflect the inverse relationship between long-duration bond prices and interest rates — when long yields rise, prices fall, and the 15+ year maturity concentration amplifies that effect. There is no three-year return data available given the fund's June 2024 listing date. Investors should interpret these figures in the context of a fund that is designed to deliver returns over a full interest rate cycle rather than in any specific short-term window.

ALTB is a purposefully specialised instrument designed for investors with a clear perspective on the trajectory of long-term Australian government bond yields. The fund's 15+ year maturity focus, 100% government bond composition, very low 0.15% management fee, and concentrated portfolio of 19 holdings reflect a product built for precision rather than broad-based fixed income exposure. The negative total returns across all measured horizons — one month, three months, six months, and one year — are a direct consequence of the interest rate environment during those periods and underscore the amplified rate sensitivity embedded in the fund's structure. For investors and portfolio managers who employ long-duration government bonds as a macro positioning tool or as a hedge against Deflation and risk-off scenarios, ALTB provides a liquid and cost-efficient vehicle to express that view within the ASX-traded format.