Betashares CEO, Mr Alex Vynokur
Betashares, a leader in the Australian financial services industry, today launched the first ETF to invest fully in an ethically-screened portfolio of Australian bonds.
The Betashares Ethical Australian Composite Bond ETF (ASX: AEBD) offers investors exposure to a diversified portfolio of high-quality Australian corporate and government bonds that are screened to exclude issuers (other than sovereign bond issuers) with material exposure to fossil fuels or engaged in activities considered inconsistent with responsible investment considerations.[1]
AEBD represents a breakthrough in ethical Australian fixed income investing by aiming to track an index that combines robust environmental, social and governance (ESG) screens with an intelligent investment strategy that weights bonds on their risk-adjusted income potential, rather than adopting a debt-weighted indexing approach. This strategy seeks to provide higher returns compared to standard fixed income benchmarks, such as the AusBond Composite Index, appealing to both values-driven investors and those seeking strong financial performance.
The launch of AEBD comes at a time of ongoing interest in fixed income by investors and their financial advisers. Over the past two years, global interest rate hikes have placed fixed income in the spotlight, with Australian fixed income ETFs capturing over $10.3 billion in net inflows since October 2022. Betashares has received over 35% of these inflows as the largest provider of fixed income ETFs in Australia. As inflation continues to moderate and major central banks begin to cut interest rates, investor interest in fixed income is anticipated to strengthen, positioning AEBD as a timely solution for ethical Australian investors and advisers seeking exposure to core Australian fixed income options.
AEBD will form part of Betashares’ leading range of ethical and responsible investment ETFs which now includes 9 funds and a total of $5.6 billion in funds under management as of end September 2024. Betashares has led the way in providing innovative responsible investment solutions for ethically conscious investors. For example, in 2017, Betashares was the first to offer ETFs that combine a broad range of ethical eligibility screens for international and Australian equities in our Global Sustainability Leaders ETF (ASX: ETHI) and Australian Sustainability Leaders ETF (ASX: FAIR) respectively.
Betashares CEO, Mr Alex Vynokur, said Betashares is proud to expand the range of robust investment solutions that allow investors to align their portfolio with their values with innovative ETFs across a broad range of asset classes.
“AEBD represents a core portfolio building block for ethically-minded Australian investors and their advisers seeking an intelligent fixed income allocation that reflects responsible investment principles. We’re proud to leverage our market leadership in both ethical and fixed income ETFs to offer a unique portfolio solution that meets the evolving preferences of advisers and investors alike,” Mr Vynokur said.
“Our commitment to delivering ETFs that meet the dual goals of delivering financial returns and meeting responsible investment considerations continues to drive our passion for innovation within this investment category. We believe AEBD will become a foundational element in the portfolios of many ethically-minded Australian investors,” Mr Vynokur concluded.
More information about AEBD can be found at the following link.
ABOUT BETASHARES:
Betashares is a leading Australian financial services company dedicated to helping customers build wealth.
We currently serve more than one million investors, and thousands of financial advisers who are helping Australians achieve their financial goals.
Betashares has $43 billion in assets under management, the broadest range of ETFs on the Australian market, and recently launched Betashares Direct, an investing platform designed to help customers build long-term wealth.
This information has been prepared by Betashares Capital Ltd (ACN 139 566 868 AFS Licence 341181) (Betashares). It is general information only and does not take into account the objectives, financial situation or needs of any investor. Investments are subject to investment risk, investment value may go down as well as up, and investors may not get back the full amount originally invested. Before making an investment decision, investors should consider the PDS and Target Market Determination (TMD) available at www.betashares.com.au, and their circumstances and obtain financial advice.
There are risks associated with an investment in the Fund, including market risk, interest rate risk, credit risk and non-traditional index methodology risk. Investment value can go up and down. An investment in the Fund should only be considered as a part of a broader portfolio, taking into account your particular circumstances, including your tolerance for risk. For more information on risks and other features of the Fund, please see the Product Disclosure Statement and Target Market Determination, both available at www.betashares.com.au.
[1] Details of the approach to screening, including the application of materiality thresholds can be found in the product PDS.
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