A day after Global X celebrated the launch of Australia’s first exchange-traded fund (ETF) to target the “critical backbone” of AI – AINF – Betashares said its own “Australian first” offering is soon coming to the ASX.
Namely, the specialist ETF manager said on Thursday it is launching the Betashares Defined Income Bond ETF range.
“Each ETF in the range will invest in a portfolio of investment-grade corporate bonds that mature in a designated year,” Betashares said.
It explained that, like an individual bond, the ETFs will provide “predictable, attractive income”, alongside a defined maturity date.
The ETF will comprise the 28BB (maturing May 2028), 29BB (maturing May 2029), and 30BB (maturing May 2030) Fixed Term Corporate Bond Active ETFs.
Betashares’ latest ETF launch adds to a growing list of new offerings in the Australian market this year, with momentum set to continue following Global X’s announcement of its upcoming China Tech ETF (DRGN).
Also expected next week is the debut of ETF Shares, a new entrant launching a suite of products on Cboe, including a US Quality ETF, a Magnificent 7 ETF, and a US Technology ETF.
Founded by former Global X executives Cliff Man and David Tuckwell, ETF Shares aims to position itself as a homegrown alternative, offering a range of low-cost, passive investment products designed for financial advisers, managed accounts and everyday investors.
Although the local market remains highly concentrated – with Vanguard, Betashares, and iShares collectively controlling around 65 per cent – competition has intensified in recent years, with rival fund managers frequently timing launches in close succession or introducing fee reductions to coincide with competitor activity.
Speaking with InvestorDaily earlier this week, Tuckwell said: “We’re glad to enter and bring some more competition to the markets.”
Earlier this year, State Street forecast that at least three global asset managers, each with over US$100 billion in assets under management, will enter the Australian ETF market in 2025.
New entrants that joined the market last year include Claremont, Investors Mutual Limited, Lazard Asset Management, and Monochrome, reflecting a growing appetite for innovation and diversity in the local ETF space.
