BetaShares on Monday announced the launch of the BetaShares Australian Composite Bond ETF (ASX: OZBD), to offer investors convenient and cost-effective access to a diversified portfolio of Australian bonds.
OZBD aims to track the Bloomberg Australian Enhanced Yield Composite Bond Index, before fees and expenses. According to BetaShares, it takes an intelligent investment approach by weighting bonds on the basis of their risk-adjusted income potential rather than debt-weighting, aiming to provide investors with higher returns than the most commonly used Australian fixed income benchmark, the AusBond Composite Index (AusBond).
Commenting on the launch, BetaShares CEO Alex Vynokur said OZBD will offer a convenient and cost-effective way to invest in a diversified portfolio of high-quality Australian corporate and government bonds.
“OZBD has been designed to be a core portfolio allocation for fixed income for Australian investors and their advisers. OZBD’s intelligent investment approach seeks to avoid the shortcomings of traditional debt-weighted indices and aims to provide higher returns.
“The fund’s focus on income is particularly pertinent in a rising yield environment,” Mr Vynokur concluded.
