The ASX will soon have another fixed interest ETF available for investors to trade when VanEck launches its Vectors Australian Corporate Bond Plus ETF.
VanEck is one of the largest providers of ETFs worldwide managing approximately US$43 billion in both active and passive portfolios. In Australia, VanEck currently manages 12 ETFs listed on the ASX.
The new ETF will be a smart beta Australian Fixed Income ETF which will traded under the ASX code of PLUS. According to its product disclosure statement, the fund will have a management cost of 0.32% p.a. and distributions will be made quarterly.
The new ETF will track the Markit iBoxx AUD Corporates Yield Plus Index. This index differs from the Bloomberg AusBond Composite 0+ Years Index which holds a larger basket of issues and issuers.
Source: VanEck,Bloomberg, Markit as at 31 March 2017