14 Jun – 17 Jun 2016

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Investor interest in bond ETFs went into reverse this week, with two of the largest bond ETFs experiencing significant fund outflows. iShares UBS Composite Bond ETF suffered investor sales/redemptions worth nearly 7% of the fund, while investors also pulled out of BetaShares Australian High Interest Cash ETF to a lesser degree.

Other funds, such as the Vanguard Australian Fixed Interest Index ETF and iShares UBS Government Inflation ETF were the beneficiaries to some extent but whether investors made a switch between funds based on their preferences for certain types of fixed interest investment is unknown. In any event, the whole bond ETF sector experienced a net outflow which was worth around 0.5% of the total value of funds.

ASX CASH & BOND ETFS*

NAMESYMBOLCLOSE
PRICE
1m (%)1y (%)MER (%)FUND
SIZE ($m)
BetaShares Aust High Int CashAAA50.150.202.530.18938.02
SPDR S&P/ASX Aust BondBOND26.731.324.650.2424.30
SPDR S&P/ASX Aust Govt BondGOVT26.701.394.890.228.08
iShares Composite Bond ETFIAF109.171.244.500.24313.27
iShares Treasury ETFIGB107.001.354.510.2623.25
iShares Govt Inflation ETFILB117.271.671.630.2663.80
Russell Aust Select Corp Bond ETFRCB20.67-3.210.2887.08
Russell Aust Govt Bond ETFRGB22.12-5.310.24141.90
Russell Aust Semi-Govt Bond ETFRSM20.92-3.990.26128.80
Vanguard® Aust Fxd Int Index ETFVAF51.101.244.460.2406.24
Vanguard® Aust Govt Bond Index ETFVGB50.891.334.760.287.80
Vanguard® International Crdt Securities Ind(Hedged) ETFVCF53.060.37-0.314.86
Vanguard® International Fix Int Ind(Hedged) ETFVIF53.650.69-0.214.49
*1 month/1 year performance as at end of May 2016. Closing price as at week end. Return in AUD before fees