Key Highlights

  • OZBD tracks the Bloomberg Australian Enhanced Yield Composite Bond Index, covering government, corporate and supranational bonds.
  • The fund holds about 742 bonds, with the largest single positions each around 1% to 1.2%.
  • Management fees are 0.19% a year, with an interim distribution of A$0.196 and an annual yield of 4.68%.
  • The fund traded at A$43.35 in the 5 November 2026 session, up 0.39%.

The Betashares Australian Composite Bond ETF (ASX:OZBD) gives investors a diversified spread of Australian-dollar bonds in one ASX-listed fund. Its index blends government, corporate and supranational debt, which is why its holdings are more numerous than many bond funds. Units traded at A$43.35 during the 5 November 2026 session, up 0.39%, while the S&P/ASX 200 gained 1.87%.

Fund detail

Information

Share price (5 Nov 2026 session)

A$43.35, up 0.39%

Fund size

A$1.46 billion

Management fees and costs

0.19% a year

Annual yield

4.68%

Last distribution

A$0.196 interim, ex-date 2 November 2026

Number of holdings

About 742 bonds

Benchmark

Bloomberg Aus Enh Yld Comp Bond TR AUD

Admitted to ASX

4 February 2022

What the fund is

OZBD is an exchange-traded fund that passively tracks an index of Australian-dollar fixed-rate bonds. Investors buy and sell units on the ASX during trading hours, and the unit price reflects the value of the bonds held and the Demand for units in the market.

The fund's purpose is to give a broad, diversified bond exposure in a single holding. Because it follows an index rather than a manager's selections, its holdings are determined by the index rules and rebalanced over time.

How the portfolio is built

The index is an enhanced-yield composite, which includes government, government-related, supranational and corporate issues. Australia accounts for about 67% of the portfolio, with supranational issuers at about 12%, and smaller exposures to Canada, Germany and the United States.

The portfolio holds a large number of bonds, which spreads the effect of any single issuer. The largest individual positions include International Bank for Reconstruction and Development bonds and Commonwealth Bank of Australia bonds, each around 1% to 1.2% of the fund.

Income and costs

The most recent distribution was an interim payment of A$0.196, with an ex-date of 2 November 2026 and payment on 17 November 2026. The annual yield is 4.68%. Yield reflects recent distributions relative to the unit price, so it moves as bond prices and coupons change.

Management fees and costs are 0.19% a year. Because the fund follows an index, fees are typically low compared with actively managed bond funds, but they still reduce the net return to unitholders.

What to understand before investing

Bond funds carry Interest Rate risk. When yields rise, bond prices generally fall, and the unit price of a bond fund can decline even as its income continues. The effect is larger for holdings with longer maturities.

The index's enhanced-yield approach can include issuers with higher Credit risk than government bonds. Investors should consider how much credit risk they are comfortable holding and how the fund sits alongside their existing fixed income investments.

Comparing with other bond funds

When comparing OZBD with other bond products, it helps to look at the index each fund follows, the average credit quality of its holdings and the number of issuers. A fund tracking a government-only index will generally show a different yield and risk profile from one that includes corporate and supranational debt.

Investors may also compare the fee, the distribution frequency and the way the index is rebalanced. These factors, along with the mix of issuers, determine how closely the fund follows the Bond Market it is designed to track over time.

Final Word

OZBD is a broad Australian bond fund that spreads exposure across a large number of issues. Its composition, with a notable supranational weight, separates it from funds that hold only Commonwealth government debt.