Highlights

  • BHYB aims to track the Solactive Australian Banking Preferred Shares index before fees and expenses.
  • The strategy provides exposure to listed hybrid securities issued by Australia’s four major banks.
  • The ten largest security positions accounted for 64.38% of the portfolio.
  • Management fees and costs were listed at 0.35%, with fund size of AUD 672.51 million.

Betashares Australian Major Bank Hybrids Index ETF (ASX:BHYB) provides exposure to listed hybrid securities issued by Australia’s four major banks. Its Investment objective is to track the Solactive Australian Banking Preferred Shares Index before fees and expenses. At the time of writing on 6 November 2026, BHYB was trading at AUD 9.79, down 0.10% during the session. The portfolio’s exposure relates to bank Capital instruments with their own terms and risks, rather than ordinary bank shares or deposit accounts.

A focused portfolio of bank capital instruments

Hybrid securities combine characteristics of Debt and equity. Their terms can include payment conditions and loss absorption provisions that differ from those of conventional senior bonds. For bank hybrids, conversion into shares or a write-off can occur under specified conditions. The nature of the underlying instruments is therefore central to understanding the exposure.

BHYB’s focus on the four major banks concentrates the portfolio within one industry and a small issuer group. Owning several security issues can spread exposure across different terms and issuance dates, but it does not create the same issuer diversity as a portfolio spanning many unrelated companies or sectors.

Security weights show the concentration

The largest listed position was a National Australia Bank security at 8.54%, followed by another National Australia Bank position at 7.26%. A Westpac instrument represented 6.49%, while another Westpac position was weighted at 6.31%. The leading positions also included multiple Commonwealth Bank and ANZ banking instruments.

The ten largest security positions represented 64.38%. These should be understood as individual instruments, with repeated bank names reflecting multiple exposures to the same issuer group. The holding weights do not imply ten different banking businesses. The geographic breakdown was predominantly Australian, at 98.10%, reinforcing the domestic focus without removing instrument-specific or banking sector risks.

Distributions costs and the main risks

Management fees and costs were listed at 0.35%. The latest listed interim distribution was AUD 0.041 per unit, with an ex-distribution date of 2 November 2026 and a Record Date of 3 November. Payment was scheduled for 17 November 2026. This amount does not establish a fixed payment for future periods.

The fund’s value can be affected by Credit conditions, trading liquidity, changes in distribution rates and the detailed terms of its holdings. Hybrid securities can absorb losses in circumstances where bank depositors have different protections. The index strategy does not remove those underlying risks. Sector concentration also means that developments affecting major bank funding or investor Demand for hybrids can influence several holdings at once.

Key Insights

BHYB offers a focused route to major Australian bank hybrid exposure. Multiple security issues provide instrument breadth, while repeated bank issuers retain a concentrated economic exposure. The benchmark, individual security terms and distribution conditions are more informative than treating the portfolio as a general fixed income allocation.