14 Jun – 17 Jun 2016


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.


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