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.
Country of domicile: Australia
as at 08-Mar-21
-
Exchange
ASX -
ASX code
SUBD -
Bloomberg index code
IBXXAIS1 -
Index provider
Markit Indices Limited -
NAV1
$25.28 -
Units outstanding1
5,360,191 -
Net assets1
$135.5M -
Number of holdings1
18 -
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.
as at 08-Mar-21
-
Dividend frequency
Monthly -
Management costs p.a.
0.29% - Investment management team »
- Market Announcements
- SUBD Fact Sheet
- A guide to investing in subordinated debt
- SUBD Fund Flyer
Key benefits
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 05-Mar-21
-
Running yield
2.06% -
Yield to worst
1.27%
Fundamentals as of 05-Mar-21
-
Average maturity (years)
8.52 -
Modified duration (years)
0.15
Trading information
-
ASX code
SUBD -
IRESS code
SUBD.AXW -
Units outstanding
5,360,191 -
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 08-Mar-21
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 | 0.28 | 0.74 | 1.07 | 1.08 | -- | -- | -- | 0.70 |
Income return | 0.16 | 0.48 | 0.97 | 2.10 | -- | -- | -- | 2.11 |
Total return | 0.44 | 1.22 | 2.04 | 3.18 | -- | -- | -- | 2.81 |
Index (IBXXAIS1) | 0.49 | 1.31 | 2.13 | 3.43 | 3.16 | -- | -- | 3.12 |
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 | 0.47 | 1.07 | 2.17 | 0.37 | -- | -- | -- | 0.56 | |
Income return | 0.00 | 0.33 | 0.86 | 2.16 | -- | -- | -- | 1.99 | |
Total return | 0.47 | 1.40 | 3.03 | 2.53 | -- | -- | -- | 2.55 | |
Index (IBXXAIS1) | 0.53 | 1.46 | 3.13 | 2.77 | 3.14 | -- | -- | 2.88 |
Top ten holdings (%) View all daily holdings » as at 28-Feb-21
Security name |
Coupon
|
Maturity |
Composite
rating^ |
Country†
|
Currency
|
% of Fund net assets |
|
---|---|---|---|---|---|---|---|
AUSTRALIA & NEW ZEALAND BANKING GROUP L |
2.011
|
26-Jul-29 |
BBB+
|
Australia
|
AUD
|
14.32 | |
WESTPAC BANKING CORP |
1.998
|
27-Aug-29 |
BBB+
|
Australia
|
AUD
|
9.23 | |
NATIONAL AUSTRALIA BANK LTD |
2.040
|
18-Nov-31 |
BBB+
|
Australia
|
AUD
|
9.04 | |
COMMONWEALTH BANK OF AUSTRALIA |
1.820
|
10-Sep-30 |
BBB+
|
Australia
|
AUD
|
8.91 | |
NATIONAL AUSTRALIA BANK LTD |
2.170
|
17-May-29 |
BBB+
|
Australia
|
AUD
|
8.81 | |
WESTPAC BANKING CORP |
1.815
|
22-Jun-28 |
BBB+
|
Australia
|
AUD
|
6.02 | |
AUSTRALIA & NEW ZEALAND BANKING GROUP L |
1.870
|
26-Feb-31 |
BBB+
|
Australia
|
AUD
|
5.54 | |
MACQUARIE BANK LTD |
2.920
|
28-May-30 |
BBB
|
Australia
|
AUD
|
5.47 | |
DBS GROUP HOLDINGS LTD |
1.600
|
16-Mar-28 |
A
|
Singapore
|
AUD
|
5.26 | |
COMMONWEALTH BANK OF AUSTRALIA |
2.670
|
03-Jun-26 |
BBB+
|
Australia
|
AUD
|
5.23 | |
Top 10 Total (%) | 77.83 |
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 28-Feb-21
-
Country
Weightings (%) -
Australia
94.4 -
Singapore
5.3 -
Other/Cash
0.3 -
Total
100.0
Sector weightings (%) as at 28-Feb-21
-
Sector
Weightings (%) -
Banking Services
92.2 -
Insurance
7.5 -
Other/Cash
0.3 -
Total
100.0
Credit quality (%) as at 28-Feb-21
Composite | Contribution to duration |
% of Net Assets |
|
---|---|---|---|
Investment Grade | A | 0.01 | 5.25 |
BBB | 0.13 | 94.43 | |
Total Investment Grade | -- | 0.14 | 99.68 |
Maturity (%) as at 28-Feb-21
Average Portfolio Maturity: 8.47 Years