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VanEck Vectors Australian Corporate Bond Plus ETF

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VanEck Vectors Australian Corporate Bond Plus ETF PLUS

Fund description: PLUS invests in a diversified portfolio of Australian dollar denominated bonds consisting predominantly of the highest yielding investment grade corporate bonds issued in Australia with the aim of providing investment returns (before fees and other costs) that track the performance of the iBoxx AUD Corporates Yield Plus Mid Price Index.

Index description:  The iBoxx AUD Corporates Yield Plus Mid Price Index (IBXXAYM2) is designed to reflect the performance of the higher-yielding AUD denominated corporate bond market with credit ratings from AAA to BB-. Investment Grade bonds must make up at least 80% of the portfolio.

Country of domicile: Australia

 as at 22-Jan-21

  • Exchange

    ASX

  • ASX code

    PLUS

  • Bloomberg index code

    IBXXAYM2

  • Index provider

    Markit Indices Limited

  • NAV

    $18.91

  • Units outstanding

    13,578,560

  • Net assets

    $256.8M

  • Number of holdings

    132

  • Inception date1

    09-May-17

  • ASX commencement

    11-May-17

1The date the ETF was seeded prior to quotation on ASX.

as at 22-Jan-21

Key points

Underlying Index: iBoxx AUD Corporates Yield Plus Mid Price Index (IBXXAYM2).

The index is designed to reflect the performance of the higher-yielding AUD denominated corporate bond market with Credit Ratings from AAA to BB-. Investment Grade bonds must make up at least 80% of the index. The index typically includes AUD denominated bonds issued in Australia by corporate entities such as the four largest banks in Australia, foreign banks, other lending institutions and property trusts. AUD bonds issued by foreign governments and foreign semi-governments may also be included. Australian government and semi-government bonds are excluded from the index.

Bonds are included in the index based on issue size, amount outstanding, time to maturity and type. Markit iBoxx selects the higher-yielding corporate bonds from their universe of AUD Corporate bonds using a methodology which focuses on each bond’s yield relative to an Australian Commonwealth government bond with a similar maturity.

To enter the index a bond must have at least a Credit Rating of Investment Grade and have a time to maturity of between 2 and 10 years. To remain in the index the bond must have at least a Markit iBoxx rating of BB- and have a time to maturity of at least 1.25 years. Bonds with a rating below Investment Grade may not exceed 20% of the index.

Index provider:

Markit Indices Limited, England. iBoxx AUD Corporates Yield Plus Mid Prie Index is the property of Markit Indices Limited (“Index Sponsor”) and has been licensed for use in connection with the VanEck Vectors Australian Corporate Bond Plus ETF. The Index is the property of Markit Indices Limited (‘Markit’) and iBoxx® and Markit® are trademarks of Markit or its affiliates. The Index and trademarks have been licensed for use by VanEck. The Fund is not sponsored, endorsed, or promoted by Markit.

Index profile  

  • Bloomberg index code

    IBXXAYM2

  • Launch date

    30-Nov-11

  • Base date

    30-Nov-11

  • Rebalance frequency

    Quarterly

Index fundamentals
as at 22-Jan-21

  • Yield to maturity

    1.50%

  • Effective duration

    4.67

Top ten index constituents (%) as at 31-Dec-20

Total constituents: 145
Constituent Name
Coupon
 Maturity Weighting (%)
VERIZON COMMUNICATIONS
4.500
 17-Aug-27 1.58
AUSGRID FINANCE PTY LTD
3.750
 30-Oct-24 1.53
AUSGRID FINANCE PTY LTD
0.000
 05-Feb-27 1.41
EMIRATES NBD BANK PJSC
0.000
 26-Feb-30 1.32
SUNCORP-METWAY LTD
3.250
 24-Aug-26 1.26
AUSNET SERVICES HOLDINGS
4.200
 21-Aug-28 1.24
TELSTRA CORP LTD
4.000
 19-Apr-27 1.21
WOOLWORTHS GROUP LTD
0.000
 20-May-30 1.21
NSW ELECTRICITY NETWORKS
0.000
 23-Sep-30 1.16
LONSDALE FINANCE PTY LTD
3.900
 15-Oct-25 1.15
Top ten total (%) 13.07
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index country weightings (%) as of 31-Dec-20

  • Country

    Weightings (%)

  • Australia

    57.0

  • United States

    14.7

  • United Kingdom

    7.5

  • Canada

    4.2

  • Germany

    3.5

  • South Korea

    3.0

  • Uae

    2.7

  • New Zealand

    2.4

  • France

    1.4

  • Switzerland

    1.3

  • Belgium

    1.0

  • Qatar

    1.0

  • Austria

    0.5

  • Total

    100.2

Index sector weightings (%) as at 31-Dec-20

  • Sector

    Weightings (%)

  • Financial

    32.8

  • Consumer, Non-cyclical

    15.6

  • Utilities

    14.1

  • Communications

    11.4

  • Consumer, Cyclical

    10.6

  • Industrial

    10.4

  • Government

    3.2

  • Energy

    1.0

  • Basic Materials

    0.9

  • Total

    100.0

Index credit quality (%) as at 31-Dec-20
Investment Grade AAA 1.26
AA 9.10
A 35.22
BBB 54.41
Total Investment Grade -- 100.00
Not Rated -- --
Composite Rating: An evenly weighted blend of a security's Moody's, S&P and Fitch. This composite is not intended to be a credit opinion.

Maturity (%) as at 31-Dec-20

Average Maturity: 5.35 Years