BetaShares releases government bond ETF

BetaShares has added to its range of fixed income products with a new exchange-traded fund indexed to Australian government bonds.

The new Australian Government Bond ETF aims to track the performance of an index that provides exposure to a portfolio of high-quality, income-producing bonds issued primarily by Australian federal and state governments, and with a component issued by supranationals, sovereign agencies and similar organisations, BetaShares said in a statement.

In particular, BetaShares said the long duration profile of the ETF, coupled with the liquidity, quality and security of Australian government bonds that it owns, allows it to serve as an important building block for constructing robust, diversified investment portfolios.

“This is our first product that offers specific exposure to government bonds, a category that enjoys the highest level of investor security within the Australian bond market,” said BetaShares chief executive Alex Vynokur.

“Government bonds are a core part of a balanced portfolio given their historical negative correlation to equities and high level of stability relative to corporate bonds.

“Australian government bonds are considered to be an important ‘safe-haven’ asset class for investors and their advisers, and we are excited to deliver another compelling, cost effective fixed income investment solution to the market.”

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BetaShares releases government bond ETF
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Adrian Flores

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].

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