BetaShares 2028 Fixed Term Corporate Bond ETF (28BB): Defined Maturity Bonds with Predictable Monthly Income

Key Takeaways

• 28BB is a fixed-term bond ETF that will wind down and return Capital as holdings mature around 2027–2028.
• The fund targets a fixed monthly distribution per unit, offering investors predictable income.
• With a Beta of 0.37 and Standard Deviation of 1.15, it is one of the lowest-risk bond ETFs on the ASX.
• The portfolio holds 50 Investment grade, AUD-denominated corporate bonds with a diversified geographic mix.
• A management fee of 0.22% p.a. makes it a cost-efficient option for short-duration fixed income exposure.

The BetaShares 2028 Fixed Term Corp Bond Active ETF, listed on the Australian Securities Exchange under the ticker 28BB, offers a distinctive approach to fixed income investing: a defined-maturity bond fund that will wind down and return capital to investors as its holdings mature around 2028. Admitted to the ASX on 2 May 2025, 28BB is one of the newest funds in the BetaShares fixed income range and operates without a traditional benchmark. With A$5.47 million in Assets across 220,332 units outstanding, it is the smallest fund reviewed here, but its fixed-term structure is unique among the BetaShares ETF suite.

Investment Objective and Fixed-Term Structure

The fund aims to provide investors with access to a diversified portfolio of fixed-rate, investment grade, Australian dollar denominated corporate bonds with Maturity dates occurring between May 2027 and May 2028, inclusive. The fund also targets a monthly distribution of a fixed dollar amount per unit — a distribution per unit (DPU) target — which provides investors with a predictable income stream over the fund's life. This fixed monthly distribution is a key differentiating feature: unlike most bond ETFs where distributions vary with market conditions, 28BB's fixed DPU target offers investors certainty about the income they will receive each month.

The fixed-term structure means that as bonds within the portfolio mature between May 2027 and May 2028, the fund will wind down in an orderly fashion and return capital to unitholders. This makes 28BB behave somewhat like a Corporate Bond ladder or a term deposit — but with the Liquidity and Diversification benefits of an ETF. Investors who hold 28BB to maturity can expect to receive their invested capital back alongside the monthly distributions paid along the way.

The fund is classified in the Unconstrained Fixed Income category, which encompasses funds with broad scope to build a portfolio with little reference to traditional bond indices. This classification reflects 28BB's fixed-term, target-distribution mandate, which does not track any standard market benchmark.

Fund at a Glance

28BB last traded at A$24.87 on 10 August 2026. The fund manages A$5.47 million across 220,332 units outstanding. A management fee of 0.22% per annum applies. The fund is registered under ISIN AU0000392169.

Risk Profile

28BB carries a beta of 0.37 and a standard deviation of 1.15 — both substantially lower than the broad composite bond ETFs OZBD and AGVT. This reflects the shorter duration of the fund's portfolio: because all holdings mature between 2027 and 2028, the remaining time to maturity — and therefore the fund's Interest Rate sensitivity — reduces as the wind-down date approaches. The low beta and standard deviation make 28BB a relatively stable fixed income instrument compared to longer-duration bond funds. No Sharpe Ratio is currently available.

Portfolio Composition and Geographic Exposure

28BB holds 50 individual corporate bond positions, with the top 10 holdings accounting for 25.01% of total assets — a relatively even distribution reflecting the fund's diversified corporate bond mandate. All holdings are fixed-rate, investment grade, Australian dollar denominated bonds maturing between May 2027 and May 2028. Top positions include two ANZ Group Holdings bonds (at 4.7% and 4.5%), Macquarie Group (4.15%), Fonterra Co-operative Group (4.0%), and Lendlease Finance (3.4%). International names include Blue Owl Credit Income Corp (US), Verizon Communications (US, two bonds), and Auckland International Airport (New Zealand).

Australia is the dominant geographic allocation at 63.19%, with a meaningful allocation to the United States (9.34%) and the United Kingdom (7.52%). New Zealand (4.94%), Canada (3.78%), Spain (2.25%), France (1.85%), Belgium (1.87%), Qatar (1.86%), and South Korea (1.72%) complete the international exposure. The breadth of the geographic allocation reflects the wide universe of AUD-denominated corporate bonds available to international issuers seeking Australian dollar funding.

Asset Allocation

28BB holds 98.96% of its assets in bonds and 1.03% in cash. There are no equity or other Asset Class allocations. The near-fully invested bond position reflects the fund's specific mandate to hold corporate bonds maturing in the 2027–2028 window, with only a small cash buffer for operational liquidity.

Distribution Information

28BB targets a fixed monthly distribution of A$0.084 per unit — a distinctive feature among Australian fixed income ETFs. This DPU target has been met consistently since the fund's inception, with A$0.084 paid in each of the past five months (April through August 2026). The annual yield is 4.07%, calculated on the fund's current unit price. The ex-date for the most recent distribution was 3 August 2026, with payment on 18 August 2026.

Fund Manager and Administration

28BB is managed by BetaShares, headquartered at Level 46, 180 George Street, Sydney, NSW 2000, reachable on 02 9290 6888. Share registry services are provided by MUFG Corporate Markets (AU) Limited, Liberty Place, Level 41, 161 Castlereagh St, Sydney, NSW 2000.

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