Floating Rate and Subordinated Bank Debt: How ASX:QPON, ASX:FLOT and ASX:BSUB Differ

Sonal Goyal

10 November 2026 09:16 PM AEDT

Floating Rate and Subordinated Bank Debt: How ASX:QPON, ASX:FLOT and ASX:BSUB Differ

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Key Highlights

Betashares Australian Bank Senior Floating Rate Bond ETF (ASX:QPON) holds senior bank floating rate notes and has a listed Yield of 4.50%.
Betashares Aus Major Bank Subordinated Debt ETF (ASX:BSUB) has the highest listed yield of the three at 5.00%, reflecting its subordinated ranking.
VanEck Australian Floating Rate ETF (ASX:FLOT) is the largest at about $1.43 billion and is the most diversified by issuer count.
ASX:QPON and ASX:BSUB are concentrated in the major banks, with top-ten weights above 80%.

Three ETFs hold floating rate bank and corporate notes on the ASX: Betashares Australian Bank Senior Floating Rate Bond ETF (ASX:QPON), VanEck Australian Floating Rate ETF (ASX:FLOT) and Betashares Aus Major Bank Subordinated Debt ETF (ASX:BSUB). Floating rate coupons reset with short-term rates, so all three are less sensitive to rate moves than fixed bonds. Their seniority and Diversification differ, which this article explores.

Measure	ASX:QPON	ASX:FLOT	ASX:BSUB
Listed price	$26.21	$24.93	$25.52
Fund size	$2.48 billion	$1.43 billion	$846.46 million
Management fee	0.22%	0.22%	0.29%
Listed annual yield	4.50%	4.65%	5.00%
Holdings	18	250	13
Top ten holdings	81.64%	13.71%	83.38%

Seniority and issuer mix

ASX:QPON holds senior floating rate notes issued by Australian banks, and ASX:BSUB holds subordinated notes from the major banks. Subordinated notes rank below senior debt if an issuer fails, which is why ASX:BSUB pays more. ASX:FLOT holds a wider mix of senior bank and corporate notes, with 250 issuers, of which the top ten make up only 13.71%.

ASX:QPON and ASX:BSUB both concentrate their holdings in a small group of banks, which means the funds' outcomes depend heavily on a few balance sheets.

Yield and cost

Listed yields rise from ASX:QPON at 4.50% to ASX:FLOT at 4.65% and ASX:BSUB at 5.00%. ASX:BSUB carries the highest fee at 0.29%, while ASX:QPON and ASX:FLOT both charge 0.22%.

ASX:FLOT's listed yield is slightly higher than ASX:QPON despite its broader holdings, and the listings do not set out the reason for the difference.

Risks to weigh

The floating rate structure lowers rate sensitivity across all three, but Credit risk is the main concern. ASX:BSUB's subordinated position means holders can lose more than senior creditors in a bank failure, and some subordinated securities can defer coupons. ASX:QPON and ASX:BSUB's concentration adds issuer-specific risk.

ASX:FLOT also holds a position in the VanEck Cash Plus Active ETF, which adds a small layer of exposure to another fund's holdings.

Final Word

The three floating rate funds share a rate profile but differ in seniority and concentration. ASX:BSUB offers the highest yield with the greatest loss exposure, ASX:QPON provides senior bank exposure with heavy concentration, and ASX:FLOT spreads risk across a wider issuer base at a mid-range yield.

FAQs

Q: Which fund has the highest yield?

A: ASX:BSUB, at 5.00%.

Q: Which fund is the most diversified by issuer count?

A: ASX:FLOT, with 250 companies and issuers.

Q: What makes ASX:BSUB riskier than ASX:QPON?

A: It holds subordinated debt, which ranks below senior bank debt if an issuer fails.

Q: Which fund is the largest?

A: ASX:FLOT, at about $1.43 billion.

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