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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 04-Aug-20

  • Exchange

    ASX

  • ASX code

    SUBD

  • Bloomberg index code

    IBXXAIS1

  • Index provider

    Markit Indices Limited

  • NAV1

    $24.85

  • Units outstanding1

    4,240,065

  • Net assets1

    $105.4M

  • Number of holdings1

    13

  • 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 03-Aug-20

  • Running yield

    2.34%

  • Yield to worst

    1.86%

Fundamentals as of 03-Aug-20

  • Average maturity (years)

    8.16

  • Modified duration (years)

    0.10

Trading information

  • ASX code

    SUBD

  • IRESS code

    SUBD.AXW

  • Units outstanding

    4,240,065

  • 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  04-Aug-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 $24.85
$24.89		 16,374
386		 $0.02 / +0.08%
$0.01 / +0.04%		 +0.40%
+0.42%
 $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 0.72 4.75 -1.76 -- -- -- -- -1.47
Income return 0.18 0.58 1.27 -- -- -- -- 1.45
Total return 0.90 5.33 -0.49 -- -- -- -- -0.02
Index (IBXXAIS1) 0.96 5.39 -0.35 1.32 2.87 -- -- 0.25
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 0.72 4.75 -1.76 -- -- -- -- -1.47
Income return 0.18 0.58 1.27 -- -- -- -- 1.45
Total return 0.90 5.33 -0.49 -- -- -- -- -0.02
Index (IBXXAIS1) 0.96 5.39 -0.35 1.32 2.87 -- -- 0.25
The tables above show past performance of the ETF from its Inception Date and of the Index from its Base Date. Results are calculated to the last business day of the month and assume immediate reinvestment of distributions. ETF results are net of management fees and costs, but before brokerage fees or bid/ask spreads incurred when investors buy/sell on the ASX. Returns for periods longer than one year are annualised. Past performance is not a reliable indicator of current or future performance which may be lower or higher.

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

No. of holdings: 13
Security name
Coupon
 Maturity
Composite
rating^
Country†
Currency
 % of Fund
net assets
AUSTRALIA & NEW ZEALAND BANKING GROUP L
2.113
 26-Jul-29
BBB
Australia
AUD
 14.95
NATIONAL AUSTRALIA BANK LTD
2.118
 18-Nov-31
BBB
Australia
AUD
 10.84
WESTPAC BANKING CORP
2.080
 27-Aug-29
BBB
Australia
AUD
 9.16
MACQUARIE BANK LTD
3.002
 28-May-30
BBB
Australia
AUD
 8.71
AUSTRALIA & NEW ZEALAND BANKING GROUP L
2.798
 17-May-26
BBB
Australia
AUD
 8.30
NATIONAL AUSTRALIA BANK LTD
2.248
 17-May-29
BBB
Australia
AUD
 7.76
DBS GROUP HOLDINGS LTD
1.680
 16-Mar-28
A
Singapore
AUD
 7.74
COMMONWEALTH BANK OF AUSTRALIA
2.746
 03-Jun-26
BBB
Australia
AUD
 7.29
WESTPAC BANKING CORP
3.196
 10-Mar-26
BBB
Australia
AUD
 7.19
NATIONAL AUSTRALIA BANK LTD
2.505
 21-Sep-26
BBB
Australia
AUD
 6.58
Top 10 Total (%) 88.52

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-Jun-20

  • Country

    Weightings (%)

  • Australia

    92.0

  • Singapore

    7.7

  • Other/Cash

    0.2

  • Total

    99.9

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

  • Sector

    Weightings (%)

  • Banks

    95.0

  • Insurance

    4.8

  • Other/Cash

    0.2

  • Total

    100.0

Credit quality (%) as at 30-Jun-20

Composite Contribution to
duration		 % of Net
Assets
Investment Grade A 0.01 7.74
BBB 0.14 92.03
Total Investment Grade -- 0.15 99.77
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-Jun-20

Average Portfolio Maturity: 8.26 Years