Key Highlights

  • The fund tracks an ethically screened composite bond index and holds 277 companies and issuers.
  • Supranational issuers make up 14.94% of the portfolio, and Australia makes up 60.13%.
  • The management fee is 0.34%, and the listed annual Yield is 4.43%.
  • The top ten holdings represent 13.59% of the fund, with bonds making up the entire portfolio.

Betashares Ethical Australian Composite Bond ETF (ASX:AEBD) tracks the Bloomberg Australian Enhanced Yield Ethically Screened Composite Bond Index before fees and expenses. The units were listed at $49.69, and the management fee is 0.34%. The index applies an ethical screen to a composite of Australian government, supranational and corporate bonds. The listing does not set out the screening criteria in detail, so investors wanting to know which issuers are excluded should consult the fund's disclosure documents.

Ticker

ASX:AEBD

Listed price

$49.69

Management fee

0.34%

Listed annual yield

4.43%

Benchmark

Bloomberg Au Enh Yld Eth Scr Com TR AUD

Holdings

277 companies

Portfolio make-up

Bonds make up 100% of the fund. Australia accounts for 60.13%, supranational issuers for 14.94%, Canada for 5.87%, Germany for 4.26%, the Netherlands for 3.58% and the United States for 3.44%. The largest holdings include Alphabet bonds at 1.50%, an Australian Commonwealth government Loan at 1.44%, MTR Corporation at 1.43%, a Commonwealth 2.75% bond at 1.43%, and International Finance Corporation bonds at 1.42%.

The top ten holdings make up 13.59% of the fund, so the portfolio is spread across the 277 issuers.

Income and costs

The listed annual yield is 4.43%, and the management fee is 0.34%. The yield is set by the enhanced yield approach of the index, which includes corporate and supranational issuers that pay more than Commonwealth government bonds.

Risks to weigh

Ethical screening narrows the universe of eligible bonds, which can change the mix of issuers and their yields compared with a broader index. The fund is still exposed to Interest Rate and Credit risk, and the screen does not reduce either. Investors should check the screening criteria against their own views before investing, since the listing does not give those details.

Final Word

The Betashares Ethical Australian Composite Bond ETF combines an ethical screen with an enhanced yield bond index. Its income is higher than government-only products, while its risk profile still follows interest rates and credit conditions.