SUBD - VanEck Vectors Australian Subordinated Debt ETF | Australian Income

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VanEck Vectors Australian Subordinated Debt ETF SUBD

Fund description: SUBD invests in a portfolio of subordinated bonds with the aim of providing investment returns before fees and other costs that track the performance of the Index.

Index description: The iBoxx AUD Investment Grade Subordinated Debt Mid Price Index is designed to reflect the performance of investment grade subordinated bonds denominated in AUD. The index only includes AUD denominated floating rate bonds issued by financial institutions that qualify as Tier 2 Capital under APRA's Rules (or equivalent foreign rules), and which hold an iBoxx credit rating of investment grade.

 as at 28-Oct-20

  • Exchange

    ASX
  • ASX code

    SUBD
  • Bloomberg index code

    IBXXAIS1
  • Index provider

    Markit Indices Limited
  • NAV1

    $25.06
  • Units outstanding1

    4,800,105
  • Net assets1

    $120.3M
  • Number of holdings1

    16
  • Inception date2

    28-Oct-19
  • ASX commencement

    30-Oct-19

1As of the close of the previous trading day.
2The date the ETF was seeded prior to quotation on ASX.

Key benefits

Investment grade subordinated bonds
Access a portfolio of regulatory Tier 2 Capital investment grade credit quality subordinated floating rate bonds that rank ahead of Additional Tier 1 Capital bonds such as listed hybrids

Potential to protect against rising rates
Subordinated bonds pay coupons (interest) that vary with short-term interest rates and interest rates are reset periodically resulting in reduced duration (interest rate risk)

Yield premium
For an elevated risk, subordinated bonds offer a higher yield

Yields as of 27-Oct-20

  • Running yield

    2.23%
  • Yield to worst

    1.63%

Fundamentals as of 27-Oct-20

  • Average maturity (years)

    8.66
  • Modified duration (years)

    0.12

Trading information

  • ASX code

    SUBD
  • IRESS code

    SUBD.AXW
  • Units outstanding

    4,800,105
  • ISIN

    AU0000061186

Fees and other costs  

  • Management costs p.a.

    0.29%

Key risks

An investment in the ETF carries risks associated with: subordinated debt, bond markets generally, interest rate movements, issuer default, credit ratings, fund operations, liquidity and tracking an index. See the PDS for details.

Prices as at  28-Oct-20

NAV/
Last trade
Volume:
30-day avg/
Previous day
Daily change: NAV/
Last trade
YTD change:
NAV/
Last trade
Premium/
Discount
Premium/
Discount
Distribution charts
NAV &
Premium /Discount
History
NAV
Chart
SUBD $25.06
$25.11
14,792
3,269
$0.00 / +0.00%
$0.01 / +0.02%
+1.80%
+1.79%
$0.04
+0.16%

Performance history (%) View all ETFs » View all indices »

1 Mth 3 Mths 6 Mths 1 Yr 3 Yrs p.a. 5 Yrs p.a. 10 Yrs p.a. ETF Inception p.a.
Price return -0.27 1.08 5.88 -- -- -- -- -0.40
Income return 0.16 0.53 1.14 -- -- -- -- 1.99
Total return -0.11 1.61 7.02 -- -- -- -- 1.59
Index (IBXXAIS1) -0.11 1.65 7.12 2.26 3.05 -- -- 1.91
1 Mth 3 Mths 6 Mths 1 Yr 3 Yrs p.a. 5 Yrs p.a. 10 Yrs p.a. ETF Inception p.a.
Price return -0.27 1.08 5.88 -- -- -- -- -0.40
Income return 0.16 0.53 1.14 -- -- -- -- 1.99
Total return -0.11 1.61 7.02 -- -- -- -- 1.59
Index (IBXXAIS1) -0.11 1.65 7.12 2.26 3.05 -- -- 1.91

Top ten holdings (%) View all daily holdings » as at 30-Sep-20

No. of holdings: 16
Security name
Coupon
Maturity
Composite
rating^
Country
Currency
% of Fund
net assets
AUSTRALIA & NEW ZEALAND BANKING GROUP L
2.102
26-Jul-29
BBB
Australia
AUD
14.68
WESTPAC BANKING CORP
2.072
27-Aug-29
BBB
Australia
AUD
9.88
NATIONAL AUSTRALIA BANK LTD
2.120
18-Nov-31
BBB
Australia
AUD
9.20
NATIONAL AUSTRALIA BANK LTD
2.250
17-May-29
BBB
Australia
AUD
8.00
NATIONAL AUSTRALIA BANK LTD
2.490
21-Sep-26
BBB
Australia
AUD
7.07
MACQUARIE BANK LTD
2.990
28-May-30
BBB
Australia
AUD
6.81
DBS GROUP HOLDINGS LTD
1.681
16-Mar-28
A
Singapore
AUD
6.66
AUSTRALIA & NEW ZEALAND BANKING GROUP L
2.800
17-May-26
BBB
Australia
AUD
6.52
WESTPAC BANKING CORP
3.191
10-Mar-26
BBB
Australia
AUD
6.47
COMMONWEALTH BANK OF AUSTRALIA
2.740
03-Jun-26
BBB
Australia
AUD
6.31
Top 10 Total (%) 81.60

Source: Bloomberg. These are not recommendations to buy or to sell any security.

^Composite rating is an evenly weighted blend of a bond’s Moody’s, S&P and Fitch credit ratings when there are two or more. ‘NR’ means the bond has one ‘Investment Grade’ rating. The above ratings are not a credit opinion by VanEck on any bond or the Fund or a recommendation to buy any individual security.

– country of risk

Country weightings (%) as at 30-Sep-20

  • Country

    Weightings (%)
  • Australia

    90.0
  • Singapore

    6.7
  • Other/Cash

    3.3
  • Total

    100.0

Sector weightings (%) as at 30-Sep-20

  • Sector

    Weightings (%)
  • Banks

    87.1
  • Insurance

    9.6
  • Other/Cash

    3.3
  • Total

    100.0

Credit quality (%) as at 30-Sep-20

Composite Contribution to
duration
% of Net
Assets
Investment Grade A 0.01 6.66
BBB 0.14 90.02
Total Investment Grade -- 0.15 96.68
Composite Rating: An evenly weighted blend of a security's Moody's, S&P and Fitch ratings. Not Rated indicates that a security is rated by fewer than two of the four rating agencies.

Maturity (%) as at 30-Sep-20

Average Portfolio Maturity: 8.39 Years