BetaShares adds bond ETF

Betashares has listed a new exchange traded fund on the Australian Stock Exchange which provides investors exposure to a core portfolio of fixed income.

The BetaShares Australian Composite Bond ETF (OZBD) tracks the performance of the Bloomberg Australian Enhanced Yield Composite Bond Index before fees and expenses. That index comprises Australian Government bonds, Australian State Government bonds, Supra and Government Development Bank and Agency bonds and corporate fixed income.

BetaShares says the ETF focuses on bonds with high income potential which will go some way to compensating investors for capital return weakness in period of rising yields.

"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," BetaShares chief executive officer Alex Vynokur said.