Key Highlights

  • The fund targets fixed-rate Investment grade corporate bonds maturing between May 2027 and May 2028.
  • The fund holds 50 companies and issuers, with the top ten making up 24.41% of the portfolio.
  • Bonds make up 99.06% of the fund, with Australia at 61.43%.
  • The management fee is 0.22%, and the listed annual Yield is 4.08%.

Betashares 2028 Fixed Term Corp Bond Active ETF (ASX:28BB) gives investors access to a diversified portfolio of fixed-rate, investment grade, Australian dollar corporate bonds with maturities falling between May 2027 and May 2028. The units were listed at $24.83, and the management fee is 0.22%. The fund targets a monthly distribution of a fixed dollar amount per unit, which distinguishes it from funds that pay income that varies with holdings.

Ticker

ASX:28BB

Listed price

$24.83

Management fee

0.22%

Listed annual yield

4.08%

Category

Unconstrained Fixed Income

Holdings

50 companies

Portfolio make-up

Bonds make up 99.06% of the fund, with cash at 0.93%. Australia accounts for 61.43%, the United States for 8.69%, the United Kingdom for 8.18%, New Zealand for 4.42% and Canada for 3.80%. The largest positions include Lendlease Finance at 2.81%, ANZ Group Holdings at 2.78%, AusNet Services at 2.67% and Fonterra at 2.51%.

The top ten holdings make up 24.41% of the fund, with the rest spread across the remaining issuers. The fund is an active product, so its holdings can change within the Maturity window.

Income and costs

The listed annual yield is 4.08%, and the management fee is 0.22%. The fund's monthly distribution target is fixed in dollar terms per unit, so distributions are designed to be steady rather than tied to the yield of the holdings at any moment.

Risks to weigh

Because the fund targets a maturity window, its holdings are shorter-dated than a standard bond fund, which reduces Interest Rate sensitivity. Credit risk remains, since the bonds are corporate issues. The fixed-term structure means the portfolio will be run down over time, and investors should consider what they will do with their holdings as the maturity window closes. The monthly target is not guaranteed.

Final Word

The Betashares 2028 Fixed Term Corp Bond Active ETF offers a defined maturity window for corporate bonds, with a monthly distribution target. Its shorter horizon reduces rate sensitivity, but investors still carry credit risk and must plan for the fund's wind-down.