VanEck launches an Australian first offering targeting exposures across the yield curve
Sydney, 26 September 2023 - VanEck will launch three Australian government bond ETFs on 28 September to help advisers and investors access different maturity profiles, enabling them to adjust their duration.
Arian Neiron, VanEck's CEO and Managing Director - Asia Pacific said, “This is a first of a kind ETF product suite in Australia which comprises a variety of Australian government bonds at varying maturity levels.”
“Our offering of Australian government bonds comes to market at a time when investors are seeking capital stability in a period of significant equity market volatility. Each ETF will be a portfolio of Australian government and semi-government bonds. The Australian Government and its state and territories’ treasury corporations are highly rated and provide dependable income.”
“Investors can position their portfolios using our new ETFs to minimise the impact of rising rates by shortening bond duration and vice versa.”
“YTD Australian fixed income exchange traded products (ETPs) have attracted $2.6 billion in assets. We anticipate greater demand for fixed income as central banks have pushed nominal yields higher. There is almost $15 billion out of $156 billion AuM in Australian fixed income and we see this segment of the market doubling in the next three years,” said Neiron.
By choosing a bond or bond fund of a particular duration, investors can manage the interest rate risk of their bond investment.
VanEck’s new suite of ETFs includes:
- VanEck 1-5 Year Australian Government Bond ETF (ASX code: 1GOV) - a portfolio of Australian government bonds which have maturity dates between 1 and 5 years.
- VanEck 5-10 Year Australian Government Bond ETF (ASX code: 5GOV) - a portfolio of Australian government bonds which have maturity dates between 5 and 10 years.
- VanEck 10+ Year Australian Government Bond ETF (ASX code: XGOV) - a portfolio of Australian government bonds which have maturity dates between 10 and 20 years.
Each ETF has the potential to provide steady and reliable income, paid monthly.