Key Highlights

  • XARO is a managed fund that trades on ASX and holds a bond-focused portfolio, with a target of real returns above inflation.
  • The fund is mostly invested in Australian government and semi-government bonds, which make up most of its exposure.
  • Management fees are 0.50% a year, and the latest interim distribution was A$0.000.
  • The fund traded at A$25.00 in the 5 November 2026 session, down 0.07%.

The Ardea Real Outcome Bond Complex ETF (ASX:XARO) is a bond-focused fund listed on the ASX. Its benchmark is the consumer price index, which reflects the fund's aim to deliver outcomes linked to Inflation rather than to a Bond Market index. The unit price was A$25.00 during the 5 November 2026 session, down 0.07%, while the S&P/ASX 200 gained 1.87%.

Fund detail

Information

Share price (5 Nov 2026 session)

A$25.00, down 0.07%

Fund size

A$146.51 million

Management fees and costs

0.50% a year

Last distribution

Interim distribution of A$0.000, ex-date 1 October 2026

Units on issue

About 5.86 million

Benchmark

CPI

Market

Units trade on the AQUA market

Admitted to ASX

10 December 2018

What the fund is

XARO is established as a separate class of units in a registered managed Investment scheme. Investors buy units that trade on the ASX, and the fund's Assets are held on trust for that class of units. The fund is administered separately by its manager.

Because XARO is a managed fund rather than a conventional index ETF, its structure and reporting can differ from the products covered elsewhere in this series. Its objective is framed around an inflation-linked outcome, not a bond index, so its results depend on the manager's decisions.

How the portfolio is built

Bonds make up about 98% of the fund. Government and semi-government Debt is the main exposure, including large positions in New South Wales and Commonwealth government bonds. Australia is the largest country exposure, and the fund also holds some offshore government and corporate issues, including from Canada and France.

Holdings are numerous and the portfolio is actively managed, so its composition can change materially from one period to the next. The fund's turnover and the use of Derivatives form part of how the manager pursues its objective.

Income and costs

The most recent interim distribution on the ASX page is A$0.000, which means no income was paid for that period. Income from a bond fund can vary substantially between periods, so investors should look at the distribution history rather than a single figure.

Management fees and costs are 0.50% a year. Fees reduce the net return to unitholders and should be compared with the fees and objectives of other fixed income products.

What to understand before investing

Bond funds carry Interest Rate risk, so the unit price can fall when yields rise. Government Bonds carry less Credit risk than corporate debt, but they are not free of price risk. The fund's inflation-linked objective does not guarantee protection against inflation or against losses.

Investors should check how the fund is structured, what it can invest in and how it reports its returns. A product with an objective framed around outcomes can behave differently from a benchmark-tracking product, and the difference should be understood before comparing the two.

Comparing with other government bond funds

Investors comparing XARO with government bond ETFs may look at the benchmark, the portfolio's duration, the use of derivatives, the fee and the distribution pattern. Each affects how the fund responds to interest rate and inflation changes and how it compares with a passively managed alternative.

Final Word

XARO is a government-heavy bond fund whose stated aim is linked to inflation rather than a bond index. Investors should look closely at its managed-fund structure and at period-by-period income figures.