Key Highlights

  • The fund holds Australian government securities only, with 100% of the portfolio in Australia.
  • The fund holds 120 issuers and securities, with the top ten representing 29.62% of the portfolio.
  • The management fee is 0.10%, and the listed annual Yield is 3.06%.
  • Turnover is reported at 82.24%, the highest among the government bond funds in this set.

State Street SPDR S&P/ASX iBoxx Australian Government Bond ETF (ASX:GOVT) aims to match the S&P/ASX iBoxx Australian and State Government 0+ index before fees and costs. The units were listed at $24.19, the fund is about $147.23 million in size, and the management fee is 0.10%. The fund offers a government-only route into Australian bonds, covering both Commonwealth and state issuers.

Ticker

ASX:GOVT

Listed price

$24.19

Fund size

$147.23 million

Management fee

0.10%

Listed annual yield

3.06%

Benchmark

S&P/ASX iBoxx Aus & State Gov 0+ TR AUD

Holdings

120 companies

How the portfolio is spread

The fund is entirely Australian, and bonds make up 101.73% of the portfolio with a small negative cash balance, reflecting settlement timing. The largest positions are Australian Commonwealth government bonds, including 2.75% bonds at 3.23% and 3.19%, a 3.25% bond at 3.12%, a 2.5% bond at 3.01% and a 1.5% bond at 2.99%.

The top ten holdings account for 29.62% of the fund, a higher concentration than the broad composite bond funds, since the index is narrower.

Income and costs

The listed annual yield is 3.06%, and the management fee is 0.10%. Turnover of 82.24% is high, which means the portfolio is changed considerably over the year. That activity can raise trading costs and affects how closely the fund follows its index in practice.

Investors should expect the yield to move with government bond yields rather than with Credit conditions.

Risks to weigh

Government bonds carry Interest Rate risk, and the unit price falls when yields rise. Longer maturities are more sensitive. Inflation can erode the real value of fixed payments. The fund has no credit exposure to corporate issuers, but it remains fully exposed to the rate cycle, and its high turnover means its holdings may shift as the index is rebalanced.

Final Word

The SPDR S&P/ASX iBoxx Australian Government Bond ETF gives focused exposure to Australian government issuers at a modest cost. Its unit price will track interest rate moves closely, and the fund's high turnover is a feature investors should understand before investing.