Key Highlights

  • BSUB tracks a Solactive index of subordinated floating-rate notes issued by Australia's major banks.
  • The fund holds about 13 issuers, with ANZ, Westpac, Commonwealth Bank and National Australia Bank among the largest.
  • Management fees are 0.29% a year, with an interim distribution of A$0.121 and an annual Yield of 5.00%.
  • The fund traded at A$25.52 in the 5 November 2026 session, down 0.11%.

The Betashares Australian Major Bank Subordinated Debt ETF (ASX:BSUB) gives investors access to subordinated debt issued by the big four Australian banks. Subordinated debt ranks behind senior bank debt in the event of a default, and the fund's coupons are floating, which means income moves with rates. Units traded at A$25.52 during the 5 November 2026 session, down 0.11%, while the S&P/ASX 200 was up 1.87%.

Fund detail

Information

Share price (5 Nov 2026 session)

A$25.52, down 0.11%

Fund size

A$853.36 million

Management fees and costs

0.29% a year

Annual yield

5.00%

Last distribution

A$0.121 interim, ex-date 2 November 2026

Number of issuers

13 companies

Benchmark

Solactive Aus Major Bank Sub FRN TR AUD

Admitted to ASX

8 May 2024

What the fund is

BSUB is an exchange-traded fund that tracks a Solactive index of subordinated floating-rate notes issued by Australia's major banks. Units trade on the ASX, and the fund holds the notes in its index to reflect its composition.

The product is designed for investors seeking a higher-income alternative to senior bank debt. Because the notes are subordinated, the fund sits further down the Capital Structure than senior bank bond funds.

How the portfolio is built

The fund is entirely Australian in exposure, and its holdings are concentrated among a small group of major banks. The largest issuers are ANZ, Australia and New Zealand Banking Group, Westpac, Commonwealth Bank and National Australia Bank, with holdings each generally between about 6% and 10% of the fund.

Because there are only about 13 issuers, the fund's performance is closely tied to the financial health of the big four banks and their capital position. A problem affecting one issuer would have a meaningful effect on the portfolio.

Income and costs

The most recent distribution was an interim payment of A$0.121, with an ex-date of 2 November 2026 and payment on 17 November 2026. The annual yield is 5.00%. Yield is based on recent distributions relative to the unit price and can change as floating coupons reset.

Management fees and costs are 0.29% a year. Fees reduce the net return to unitholders, and should be compared with the fees on senior bank debt funds to understand the trade-off between yield and ranking in the capital structure.

What to understand before investing

Subordinated debt is more exposed to losses than senior debt if a bank runs into difficulty. Investors should understand that the higher income is compensation for a lower position in the capital structure, and that the fund's unit price can fall in stressed markets.

Floating coupons reset with a short-term benchmark rate, so income rises and falls with rates. The unit price is generally less sensitive to rate changes than a fixed-rate bond fund, but Credit spreads can still move the price significantly. Liquidity can also tighten in stressed periods.

Where BSUB may fit

Investors often compare BSUB with senior bank debt funds, hybrid securities and cash-style products. Each has a different place in the capital structure and a different income profile. Understanding where the fund sits in that range is an important step before deciding how it relates to a portfolio's overall risk level.

Final Word

BSUB offers a concentrated, floating-rate exposure to major bank subordinated debt. Its yield is higher than senior bank debt funds, reflecting the subordinated ranking of its holdings, and that ranking is the central point to weigh.