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.”
