VanEck’s bond ETF hits $115m
VanEck Vectors Australian Corporate Bond Plus (PLUS) has hit $115 million in funds under management (FUM) thanks to a growing interest from investors and advisers in fixed income exchange traded funds (ETFs).
According to the company, PLUS was its most traded funds in September and would be expected to become the fastest growing ETF in the December quarter, alongside its Vectors Australians Floating Rate ETF (FLOT).
VanEck Australia’s managing director, Arian Neiron said that investors were attracted to the relative security of Australian corporate credit compared to shares.
“Australian investors are finally recognising the valuable role bonds can play in a portfolio, including providing attractive income and defence against capital loss,” Neiron said.
“PLUS and FLOT may suit investors in retirement or the many who are underweight fixed income in their portfolios.
“Many Australians are heavily invested in shares, cash and low yielding term deposits.
“PLUS and FLOT provide important opportunities for investors to diversify into bonds, which are significantly underrepresented in many portfolios in a simple trade on the ASX.”
PLUS tracks the market iBoxx AUD Corporates Yield Plus Index which selects the top 50 per cent highest yielding corporate bonds issued in Australia.
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