Key Highlights

  • The fund is about $404.03 million in size and holds 200 companies and issuers.
  • Bonds make up 97.78% of the portfolio, with Australia at 64.45%.
  • The management fee is 0.32%, and the listed annual Yield is 4.61%.
  • The fund holds another VanEck product, the VanEck Cash Plus Active ETF, as one of its positions.

VanEck Australian Corporate Bond Plus ETF (ASX:PLUS) tracks the Markit iBoxx AUD Corporate Yield Plus Index, giving investors a portfolio of Australian dollar corporate bonds with a yield tilt. The units were listed at $16.73, the fund is about $404.03 million in size, and the management fee is 0.32%. The fund's yield focus means it leans toward issuers that pay more than the average corporate bond.

Ticker

ASX:PLUS

Listed price

$16.73

Fund size

$404.03 million

Management fee

0.32%

Listed annual yield

4.61%

Benchmark

Markit iBoxx AUD Corp Yield Plus TR AUD

Holdings

200 companies

Portfolio make-up

Bonds make up 97.78% of the fund, with cash at 2.21%. Australia accounts for 64.45%, Germany for 7.13%, France for 6.24%, New Zealand for 5.92%, the United States for 6.10% and the United Kingdom for 3.36%. The largest holdings include Scentre Group at 1.64%, AusNet Services at 1.46%, the VanEck Cash Plus Active ETF at 1.37%, Energie Baden-Wurttemberg at 1.35% and Qantas at 1.35%.

The top ten holdings make up 13.22%, so the portfolio is broadly spread across issuers.

Income and costs

The listed annual yield is 4.61%, and the management fee is 0.32%. The yield tilt means the fund holds issuers that pay more than the average corporate, which lifts income but adds Credit exposure.

Risks to weigh

The yield focus means the portfolio carries more credit risk than a standard corporate bond index. Lower-rated issuers can lose value more readily in a downturn, and spreads can widen quickly. Interest Rate sensitivity also remains. The holding in another VanEck ETF adds a layer of exposure that investors should understand, since its value depends on that fund's own holdings.

Final Word

The VanEck Australian Corporate Bond Plus ETF seeks extra yield from Australian corporate bonds, with a broad issuer base. The added yield comes with more credit exposure, and investors should weigh that alongside the income on offer.