Key Highlights

  • The active fund holds 100 securities, with the top ten at 54.47% and led by ANZ at 8.01%.
  • It aims to outperform the Bloomberg AusBond Bank Bill Index over a rolling three-year basis, before fees.
  • The management fee is 0.29% and the annual yield is 5.51%.
  • The monthly distribution has been $0.247 since August, up from $0.235.

Macquarie Subordinated Debt Active ETF (ASX:MQSD) gives exposure to a diversified portfolio of subordinated bonds, which may offer higher levels of yield than cash or other investment grade bonds. The fund was admitted to the ASX on 19 February 2025 and last traded at $50.13 on 13 October 2026.

Detail

Information

Ticker

ASX:MQSD

Fund

Macquarie Subordinated Debt Active ETF

Category

Diversified Credit

Benchmark

Bloomberg AusBond Bank 0+Y TR AUD

Management fee

0.29%

Total holdings

100

ASX admission date

19 February 2025

Objective and instruments

The fund aims to outperform the Bloomberg AusBond Bank Bill Index over a rolling three-year basis, before fees, and to provide regular monthly distributions with some potential for growth. Subordinated bonds are typically unsecured debt securities that rank above equity but below senior debt in a repayment after default.

Bonds represent 97.40% of the fund, stocks 1.45%, cash 0.61% and other assets 0.55%.

Top holdings

The ten largest positions account for 54.47% of the fund. Australia and New Zealand Banking Group notes lead at 8.01%, followed by National Australia Bank (6.51%), Macquarie Bank (5.91%), QBE Insurance Group (5.78%) and Westpac Banking Corporation (5.76%).

Insurance Australia Group holds 4.94%, a second ANZ note 4.70%, a second Westpac note 4.56%, Commonwealth Bank of Australia 4.54% and Credit Agricole 3.71%.

Fee, risk and distributions

The management fee is 0.29% a year. The fund reports a beta of 0.10 and a standard deviation of 0.73. The interim distribution of $0.247 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 5.51%.

The same $0.247 was paid in September and August, up from $0.235 in July and June. Geographic exposure shows the United States at 78.77% and Australia at 21.23%.

Category classification and liquidity

Morningstar places the fund in the Diversified Credit 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 typically BBB or above and sub-investment grade and unrated issues are permitted.

Liquidity indicators add a further view. Fund size and units on issue are not reported for this product, and average daily trading volume is 70,439 units. Over the five sessions from 7 to 13 October 2026, daily volume ranged from 36,400 to 102,300 units, with 25,361 recorded on 13 October while the market was still open. The bid-offer range stood at $50.13 to $50.18, and the day range at $50.13 to $50.15. These figures change through the trading day and reflect market activity rather than the fund's holdings.

Recent announcements

The issuer lodged Monthly Redemptions, Applications, Units on Issue and OTC details on 7 October, a Final Distribution and DRP Issue Price notice on 2 October, Full Year Accounts on 30 September and an Estimated Distribution on 28 September.

Final Takeaway

MQSD is an actively managed subordinated debt fund with a 0.29% fee and a top-ten concentration of 54.47%. Its monthly distribution rose from $0.235 to $0.247 in August and has stayed there. These facts describe the fund and do not forecast outcomes.