02 May – 06 May 2016

Share

[private role=’subscriber’]

After a few weeks of minimal investor interest, things really picked up as new funds flooded into the bond ETF sector. Bonds ETFs received new funds from investors equivalent to an additional 2.75%, which may not sound much until the figure is annualised.

The major beneficiary was Vanguard’s Australian Government Bond Index ETF, which received the largest flow in absolute terms as investor sought a simple, safe way to lock in fixed interest rates. All other funds in the YieldReport survey received positive investor flows with the exception of two funds; BetaShares Australian High Interest Cash and iShares UBS Government Inflation Index Fund. It was quite an understandable reaction from investors when inflation is lower than expected and the RBA has just cut its official rate.

[/private]

[private role=’subscriber’]

ASX CASH & BOND ETFS*

NAMESYMBOLCLOSE
PRICE
1m (%)1y (%)MER (%)FUND
SIZE ($m)
BetaShares Aust High Int CashAAA50.110.212.570.18952.08
SPDR S&P/ASX Aust BondBOND26.46-0.261.830.2424.05
SPDR S&P/ASX Aust Govt BondGOVT26.20-0.341.80.227.93
iShares Composite Bond ETFIAF107.91-0.231.820.24333.93
iShares Treasury ETFIGB105.83-0.391.320.2623.00
iShares Govt Inflation ETFILB114.560.41-1.380.2655.45
Russell Aust Select Corp Bond ETFRCB20.51-0.011.810.2886.40
Russell Aust Govt Bond ETFRGB21.82-0.451.660.24139.98
Russell Aust Semi-Govt Bond ETFRSM20.82-0.321.970.26128.18
Vanguard® Aust Fxd Int Index ETFVAF50.23-0.221.820.2380.74
Vanguard® Aust Govt Bond Index ETFVGB50.00-0.271.80.282.27
Vanguard® International Crdt Securities Ind(Hedged) ETFVCF52.451.72-0.313.64
Vanguard® International Fix Int Ind(Hedged) ETFVIF52.890.64-0.212.69

*1 month/1 year performance as at end of March 2016. Closing price as at week end. Return in AUD before fees

[/private]