Key Highlights

  • The fund's entire portfolio is a single holding, the Betashares Australian Investment Grade Corporate Bond ETF.
  • The management fee is 0.29%, and the listed annual Yield is 5.31%.
  • Bonds make up 99.23% of the fund, with Australian exposure at 64.68%.
  • The fund's objective is to track the Solactive Australian Investment Grade Corporate Bond Select Index, with Interest Rate risk hedged.

Betashares Interest Rate Hedged Aus Corp Bond ETF (ASX:HCRD) aims to track the performance of the Solactive Australian Investment Grade Corporate Bond Select Index, before fees and expenses. The units were listed at $25.02, and the management fee is 0.29%. The fund's structure is unusual: it holds a single underlying fund, and its interest rate hedging is designed to reduce the sensitivity of its price to changes in rates.

Ticker

ASX:HCRD

Listed price

$25.02

Management fee

0.29%

Listed annual yield

5.31%

Benchmark

Solactive Aus IG Corp Bond Slct

Holdings

1 underlying fund

How the portfolio is built

The listing shows that 100% of the fund is held in the Betashares Australian Investment Grade Corporate Bond ETF, which is itself a corporate bond fund. Within that holding, the exposures are spread across Australia at 64.68%, Germany at 12.64%, New Zealand at 5.58% and the United Arab Emirates at 3.68%.

Bonds make up 99.23% of the fund, with cash at 0.77%. Because the holding is a fund rather than individual bonds, the underlying issuers can be found by looking at the holding's own structure.

Income and costs

The listed annual yield is 5.31%, and the management fee is 0.29%. The fee sits above the underlying fund's fee, so investors are paying an additional layer of cost for the hedging structure. The yield reflects the corporate Credit spread on the underlying holding.

Risks to weigh

Interest rate hedging aims to reduce the impact of rate changes on price, but hedges are imperfect and can cost money when rates move in the opposite direction. Credit risk remains, because the underlying holding is exposed to corporate bond issuers. The fund also adds a second layer of management on top of the underlying fund, which can make it harder to assess what drives its returns.

Final Word

The Betashares Interest Rate Hedged Aus Corp Bond ETF offers a hedged route into Australian investment grade corporate bonds. Its single-holding structure and additional fee mean investors should understand the layering before weighing the hedge against the cost.