SUBD - VanEck Australian Subordinated Debt ETF | Australian Income

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VanEck 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 10-Aug-22

  • Exchange

    ASX
  • ASX code

    SUBD
  • Bloomberg index code

    IBXXAIS1
  • Index provider

    Markit Indices Limited
  • NAV1

    $24.40
  • Units outstanding1

    10,563,245
  • Net assets1

    $257.7M
  • Number of holdings1

    17
  • 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 10-Aug-22

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Key benefits

Investment grade subordinated bonds
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 09-Aug-22

  • Running yield

    3.34%
  • Yield to worst

    5.40%

Fundamentals as of 09-Aug-22

  • Credit rating

    BBB+
  • Average maturity (years)

    7.95
  • Modified duration (years)

    0.08

Trading information

  • ASX code

    SUBD
  • IRESS code

    SUBD.AXW
  • Units outstanding

    10,563,245
  • 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  10-Aug-22

NAV/
Last trade
Volume:
30-day avg/
Previous day
Daily change: NAV/
Last trade
YTD change:
NAV/
Last trade
Premium/
Discount
Premium/
Discount
Distribution charts
NAV &
Premium /Discount
History
NAV
Chart
SUBD $24.40
$24.36
91,082
52,365
$0.01 / +0.04%
$-0.05 / -0.20%
-1.76%
-2.22%
$-0.04
-0.16%

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 -0.05 -1.02 -3.04 -4.01 -- -- -- -0.96
Income return 0.25 0.66 1.11 2.03 -- -- -- 2.05
Total return 0.20 -0.36 -1.93 -1.98 -- -- -- 1.09
Index (IBXXAIS1) 0.27 -0.26 -1.72 -1.63 1.54 2.35 -- 1.40
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 -0.62 -1.86 -3.37 -3.87 -- -- -- -0.98
Income return 0.23 0.57 1.18 1.94 -- -- -- 2.03
Total return -0.39 -1.29 -2.19 -1.93 -- -- -- 1.05
Index (IBXXAIS1) -0.41 -1.22 -2.05 -1.62 1.55 2.39 -- 1.34

Top ten holdings (%) View all daily holdings » as at 31-Jul-22

No. of holdings: 17
Security name
Coupon
Maturity
Composite
rating^
Country
Currency
% of Fund
net assets
NATIONAL AUSTRALIA BANK LTD
3.150
17-May-29
BBB+
Australia
AUD
13.57
COMMONWEALTH BANK OF AUSTRALIA
2.365
20-Aug-31
BBB+
Australia
AUD
9.98
AUSTRALIA & NEW ZEALAND BANKING GROUP L
4.210
26-Jul-29
BBB+
Australia
AUD
9.75
COMMONWEALTH BANK OF AUSTRALIA
3.306
10-Sep-30
BBB+
Australia
AUD
7.83
AUSTRALIA & NEW ZEALAND BANKING GROUP L
2.935
26-Feb-31
BBB+
Australia
AUD
7.68
WESTPAC BANKING CORP
2.262
29-Jan-31
BBB+
Australia
AUD
7.24
NATIONAL AUSTRALIA BANK LTD
2.780
18-Nov-30
BBB+
Australia
AUD
5.81
NATIONAL AUSTRALIA BANK LTD
3.100
18-Nov-31
BBB+
Australia
AUD
5.70
WESTPAC BANKING CORP
3.550
22-Jun-28
BBB+
Australia
AUD
5.69
MACQUARIE BANK LTD
3.349
17-Jun-31
BBB-
Australia
AUD
4.83
Top 10 Total (%) 78.08

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 31-Jul-22

  • Country

    Weightings (%)
  • Australia

    95.5
  • Singapore

    4.4
  • Other/Cash

    0.1
  • Total

    100.0

Sector weightings (%) as at 31-Jul-22

  • Sector

    Weightings (%)
  • Banking Services

    93.5
  • Insurance

    6.4
  • Other/Cash

    0.1
  • Total

    100.0

Credit quality (%) as at 31-Jul-22

Composite Contribution to
duration
% of Net
Assets
Investment Grade A 0.01 7.92
BBB 0.10 91.97
Total Investment Grade -- 0.11 99.89

Maturity (%) as at 31-Jul-22

Average Portfolio Maturity: 7.97 Years