Key Highlights

  • HCRD holds a single underlying investment, the Betashares Australian Investment Grade Corporate Bond ETF (CRED).
  • The underlying fund is designed to be hedged for Interest Rate movements, which aims to reduce the effect of rate changes.
  • Management fees are 0.29% a year, with an interim distribution of A$0.124 and an annual Yield of 5.33%.
  • The fund traded at A$24.97 in the 5 November 2026 session, up 0.20%.

The Betashares Interest Rate Hedged Australian Corporate Bond ETF (ASX:HCRD) gives investors investment-grade corporate bond exposure with interest rate risk hedged. The fund invests in the Betashares Australian Investment Grade Corporate Bond ETF (ASX:CRED) rather than holding bonds directly. Units traded at A$24.97 during the 5 November 2026 session, up 0.20%, while the S&P/ASX 200 gained 1.87%.

Fund detail

Information

Share price (5 Nov 2026 session)

A$24.97, up 0.20%

Management fees and costs

0.29% a year

Annual yield

5.33%

Last distribution

A$0.124 interim, ex-date 2 November 2026

Underlying investment

Betashares Australian Investment Grade Corporate Bond ETF (CRED)

Benchmark

Solactive Aus IG Corp Bond Slct

Admitted to ASX

16 November 2022

What the fund is

HCRD is an exchange-traded fund that holds units in CRED, the Betashares investment-grade corporate bond fund, as its only underlying investment. Units trade on the ASX during market hours, and the unit price reflects the value of the underlying holding after the hedge is applied.

The product offers a way to access investment-grade corporate Credit with interest rate exposure managed through a hedge. Investors who want corporate bond income but prefer less sensitivity to rate moves may consider this structure.

How the structure works

Because HCRD's only holding is CRED, its portfolio is the same as CRED's portfolio before the hedge. That portfolio includes investment-grade corporate issues from several countries, with Australia the largest exposure and Germany a meaningful second.

The interest rate hedge is designed to reduce the effect of changes in government bond yields on the fund's price. As a result, returns depend more on the credit spreads and income of the underlying corporate bonds than on the direction of rates.

Income and costs

The most recent distribution was an interim payment of A$0.124, with an ex-date of 2 November 2026 and payment on 17 November 2026. The annual yield is 5.33%. Yield reflects recent distributions relative to the unit price and will move as corporate bond prices and coupons change.

Management fees and costs are 0.29% a year. Investors should note that the hedge and the structure of holding another fund can add costs, so the net return should be assessed after all of them.

What to understand before investing

Hedging is not perfect. It can leave residual rate exposure, and it can lag changes in the underlying yield curve. The hedge also introduces costs and complexity that a direct corporate bond fund does not carry, which investors should understand before comparing the two.

Corporate credit still carries risk. An issuer may be downgraded or Fail to pay, and spreads can widen in stressed markets, pushing the unit price down even when rates are stable. Investors should consider how this fund fits with their other income investments and their tolerance for credit risk.

Comparing with CRED and other hedged bond funds

Investors comparing HCRD with CRED may look at the hedge, the fee, the structure and the tax treatment of holding one fund through another. Hedged corporate bond funds can differ from unhedged ones in how they respond to rate moves, so the choice depends on the exposure the investor wants.

Final Word

HCRD offers a hedged route to investment-grade corporate bonds through a single underlying fund. Investors should be clear that its returns come from the underlying credit exposure, and that its structure adds a layer of hedging.