Key Highlights

  • Betashares 2028 Fixed Term Corp Bond Active ETF (ASX:28BB) targets corporate bonds maturing between May 2027 and May 2028, with a listed Yield of 4.08%.
  • Betashares 2031 Fixed Term Corp Bond Active ETF (ASX:31BB) targets corporate bonds maturing in 2031, with a fee of 0.22% and no listed yield.
  • Betashares Ethical Australian Composite Bond ETF (ASX:AEBD) tracks an ethically screened composite index, with a fee of 0.34% and a listed yield of 4.43%.
  • ASX:28BB and ASX:31BB are finite-life products with a defined Maturity window, while ASX:AEBD is an open-ended index fund.

Three Betashares bond ETFs take different approaches to maturity and screening: Betashares 2028 Fixed Term Corp Bond Active ETF (ASX:28BB), Betashares 2031 Fixed Term Corp Bond Active ETF (ASX:31BB) and Betashares Ethical Australian Composite Bond ETF (ASX:AEBD). Two of them target a defined maturity window for corporate bonds, while the third holds a broad composite index with an ethical screen applied.

Measure

ASX:28BB

ASX:31BB

ASX:AEBD

Listed price

$24.83

$25.05

$49.69

Fund size

Not shown

Not shown

Not shown

Management fee

0.22%

0.22%

0.34%

Listed annual yield

4.08%

Not shown

4.43%

Holdings

50

59

277

Structure

Fixed term, active

Fixed term, active

Index, ethically screened

Maturity and screening approach

ASX:28BB holds fixed-rate Investment grade corporate bonds maturing between May 2027 and May 2028, and ASX:31BB holds similar bonds maturing in 2031. Both are actively managed and target a monthly distribution of a fixed dollar amount per unit. ASX:AEBD tracks the Bloomberg Australian Enhanced Yield Ethically Screened Composite Bond Index, which holds government, supranational and corporate bonds under an ethical screen whose criteria the listing does not set out.

The two fixed term funds are designed to run down as their holdings mature, while ASX:AEBD tracks an index with no fixed end date.

Costs and yield

ASX:28BB and ASX:31BB both charge 0.22%, and ASX:AEBD charges 0.34%. The listed yields are 4.08% for ASX:28BB and 4.43% for ASX:AEBD, with ASX:31BB showing no annual yield on its listing.

The shorter maturity window of the fixed term funds reduces rate sensitivity, while the broader index of ASX:AEBD carries more Interest Rate and Credit exposure over time.

Risks to weigh

All three carry credit risk from corporate or supranational issuers, and their prices can fall when spreads widen. The fixed term funds add a wind-down consideration, since investors must plan for what happens as holdings mature. Monthly distribution targets in ASX:28BB and ASX:31BB are not guaranteed.

ASX:AEBD's ethical screen narrows the eligible universe, which can change the mix of issuers and yields compared with a broader index. Investors should check the screening criteria against their own views.

Final Word

The three funds take different routes to bond income. ASX:28BB and ASX:31BB offer defined maturity windows for corporate bonds with a monthly distribution target, while ASX:AEBD provides an open-ended ethically screened composite. Investors should weigh the wind-down of the fixed term products against the screen and open-ended structure of the index fund.