The Vectors Australian Corporate Bond Plus ETF (PLUS) keeps track of the Markit iBoxx AUD Corporates Yield Plus Index, which benchmarks the performance of the Australian dollar corporate bond market.
VanEck Australia managing director Arian Neiron said he is excited that PLUS has been added to the BT SuperWrap platform. He also expects that the demand for the high-yielding PLUS will soon increase among investors.
“While Australians are heavily invested in cash and low-yielding term deposits, PLUS provides an opportunity to investors to diversify into corporate bonds, which are significantly underrepresented in portfolios,” he continued.
“PLUS pays distributions four times a year, offering a defensive income solution for investors’ portfolios,” he added.
Ever since its launch last May, PLUS already has $41.5 million worth of investor funds, with the underlying index beating the standard corporate bond benchmark by 39.5 per cent last year after returning 4.20 per cent during the year to 30 June.
