The Betashares Australian Government Bond ETF (ASX: AGVT) has surpassed $1 billion in funds under management, Betashares’ official website has shown.
As InvestorDaily understands, the exchange-traded fund (ETF) has received more than $233 million in net inflows since the beginning of 2025, which coincides with the Reserve Bank of Australia (RBA) beginning its interest rate cutting cycle.
Recently, Australian investors and advisers have turned to high-quality fixed rate Australian bonds amid elevated global economic uncertainty, volatility in equity markets and further RBA rate cuts, head of fixed income at Betashares Chamath De Silva told InvestorDaily.
“Not only have fixed rate Australian Government Bonds provided a ballast for portfolios this year, but they have also provided investors with the potential for capital gains, with the RBA expected to embark on further rate cuts this year amid a benign inflation outlook and rising risks to global growth,” he said.
“In addition, as returns from bank deposits and floating rate strategies have come under pressure during this easing cycle, the relative appeal of high-quality fixed-rate bonds has grown.
“Our AGVT ETF has allowed investors to take advantage of these conditions in a convenient and cost-effective investment vehicle.”
Global trends appear to have also played a role. As US Treasuries have sold off due to concerns about the sustainability of US fiscal policy and trade tensions, investors have turned to other markets in search of stable, high-quality fixed income options.
De Silva further said: “Cash and fixed income ETFs, like AGVT, have opened access to institutional-grade investment strategies to a greater range of investors from all walks of life.
“As a result, all investors are now able to build stronger and more resilient portfolios across all asset classes and market conditions.”
Betashares eyes private asset market
As reported by InvestorDaily, Betashares plans to expand beyond its traditional ETFs and managed portfolios by entering the private assets space, aiming to meet growing demand from Australian investors and advisers for income and diversification in volatile markets.
The firm appointed James Fleiter, formerly of Ares Management, to lead this new initiative.
According to Peter Harper, head of distribution and capital markets at Betashares, the ETF provider is focused on responsibly opening access to private assets and enhancing support for investors and advisers.
