18 Jan – 22 Jan 2016

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Investors paused their flow of funds to bond ETFs, with the size of the ETFs in the YieldReport survey essentially the same as the previous week. Investment into or divestment out of funds was therefore a matter of “rotation” as investors switched between funds, but even so changes were minimal in both absolute terms and relative terms. A preference for any particular sector does not appear obvious.

December returns for the ETFs in the YieldReport survey have now been all received and they are typically in the 0.30% to 0.40% range, with a median return of 0.32%. This is in line with bond yields falling throughout the month. Government bond yields have continued to fall in January and, notwithstanding a widening of corporate spreads, bond fund returns in January are likely to be positive.

etfs-22jan
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ASX CASH & BOND ETFS*

NAMESYMBOLCLOSE
PRICE
1m (%)1y (%)MER (%)FUND
SIZE ($m)
BetaShares Aust High Int CashAAA50.150.212.690.18781.77
SPDR S&P/ASX Aust BondBOND25.970.342.450.2420.97
SPDR S&P/ASX Aust Govt BondGOVT25.760.382.380.227.78
iShares Composite Bond ETFIAF106.050.322.420.24289.38
iShares Treasury ETFIGB103.530.412.060.2616.28
iShares Govt Inflation ETFILB112.64-0.021.410.2645.51
Russell Aust Select Corp Bond ETFRCB20.220.192.710.2873.02
Russell Aust Govt Bond ETFRGB21.230.482.540.24166.52
Russell Aust Semi-Govt Bond ETFRSM20.610.352.540.2694.10
Vanguard® Aust Fxd Int Index ETFVAF49.50.302.410.2297.12
Vanguard® Aust Govt Bond Index ETFVGB49.060.362.320.263.47
Vanguard® International Crdt Securities Ind(Hedged) ETFVCF50.57--0.31.01
Vanguard® International Fix Int Ind(Hedged) ETFVIF51.14--0.21.02

*1 month/1 year performance as at end of December 2015. Closing price as at week end. Return in AUD before fees

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