VanEck has announced plans to launch shortly a new smart beta Australian fixed income exchange traded fund (ETF) on the Australian Securities Exchange (ASX), called the VanEck Vectors Australian Corporate Bond Plus ETF (PLUS), which is expected to provide investors with exposure to high-grade Australian dollar corporate bonds with a yield premium.
It would track the Markit iBoxx AUD Corporates Yield Plus Index, which included around 120 Australian-issued corporate bonds from over 80 issuers, and which selects the top 50 per cent highest yielding bonds issues in Australia.
According to VanEck Australia’s managing director, Arian Neiron, the new fund would target investors who were in retirement and would be suited to those seeking simple and cost effective exposure to the Australian fixed income sector as it was designed for defensive allocations.
“PLUS provides a new opportunity for investors seeking exposure to Australia’s corporate bond market with a yield premium,” he said.
“In the current low interest rate environment, finding liquid defensive high yield has been a considerable challenge for investors.”
“Globally VanEck manages US$9 billion in fixed income ETFs and PLUS extends on our philosophy to provide investors with opportunities to asset classes often underrepresented in their portfolios or new approaches to established asset classes.”
