SUBD - VanEck Vectors Australian Subordinated Debt ETF | Australian Income | Index

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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 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 22-Nov-19

  • Exchange

    ASX
  • ASX code

    SUBD
  • Bloomberg index code

    IBXXAIG1
  • Index provider

    Markit Indices Limited
  • NAV1

    $25.03
  • Units outstanding1

    80,000
  • Net assets1

    $2.0M
  • Number of holdings1

    12
  • 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 22-Nov-19

Key points

Underlying Index:
iBoxx AUD Investment Grade Subordinated Debt Index (the 'Reference Index')

The Index is designed to reflect the performance of the investment grade AUD denominated subordinated bond market.

The Index only includes AUD denominated floating rate bonds issued by financial institutions that qualify as Tier 2 Capital under the relevant APRA standards (or equivalent foreign rules), and hold an iBoxx credit rating of investment grade.

To enter the Index a subordinated bond must have at least $500m outstanding face value, an iBoxx credit rating of investment grade and a time to maturity of at least 2 years. 

If a Bond is rated by more than one recognised rating agency, then the iBoxx credit rating is the average of the provided ratings. The rating is consolidated to the nearest rating grade.

The Index is reviewed and rebalanced once per month at the end of each month. Any subordinated Bond that does not meet the outstanding face value and investment grade credit rating criteria will be removed from the Index.

If a subordinated bond is converted to shares it effectively ceases to exist on the conversion date, at which time the Bond's market value in the Index will drop to zero. The Index assumes the shares received are sold on the conversion date and will reflect the value of the proceeds from the conversion as a cash component. The cash will be removed from the Index on the next rebalance date.

The weight for each issuer is capped at 25% with any excess weight being allocated to the remaining subordinated bonds from other issuers in proportion to their existing weights.

For full details of the methodology go to www.ihsmarkit.com under Methodology.

Index provider:
Markit Indices GmbH's iBoxx AUD Investment Grade Subordinated Debt Index is the property of Markit Indices GmbH ('Markit') and has been licensed for use in connection with the VanEck Vectors Australian Subordinated Debt ETF. Markit is not a related body corporate of VanEck.

Index profile  

  • Bloomberg index code

    IBXXAIG1
  • Launch date

    30-Jun-16
  • Base date

    30-Jun-16
  • Rebalance frequency

    Monthly

Index fundamentals
as at 21-Nov-19

  • Effective duration

    0.10

Top ten index constituents (%) as at 31-Oct-19

Total constituents: 13
Constituent Name
Coupon
Maturity Weighting (%)
AUST & NZ BANKING GROUP
0.000
26-Jul-29 16.49
WESTPAC BANKING CORP
0.000
27-Aug-29 9.39
COMMONWEALTH BANK AUST
0.000
05-Nov-24 9.31
NATIONAL AUSTRALIA BANK
0.000
26-Mar-25 7.64
COMMONWEALTH BANK AUST
0.000
03-Jun-26 7.14
NATIONAL AUSTRALIA BANK
0.000
17-May-29 7.06
DBS GROUP HOLDINGS LTD
0.000
16-Mar-28 6.97
WESTPAC BANKING CORP
0.000
22-Jun-28 6.76
WESTPAC BANKING CORP
0.000
10-Mar-26 6.68
AUST & NZ BANKING GROUP
0.000
17-May-26 6.68
Top ten total (%) 84.12
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index country weightings (%) as of 31-Oct-19

  • Country

    Weightings (%)
  • Australia

    93.0
  • Singapore

    7.0
  • Total

    100.0

Index sector weightings (%) as at 31-Oct-19

  • Sector

    Weightings (%)
  • Financial

    100.0
  • Total

    100.0

Index credit quality (%) as at 31-Oct-19

Composite % of Net
Assets
Investment Grade AAA 3.46
AA 17.74
A 124.62
BBB 54.18
Total Investment Grade -- 200.00
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-Oct-19

Average Maturity: 7.92 Years