Explore Fixed Income - Global X ETFs - Australia

Fixed Income ETFs

Fixed income plays an important role for income generation, capital preservation and portfolio diversification. ETFs have democratised fixed income investing by making it easier, more liquid, and cheaper. Traditionally, fixed income investing required purchasing large minimum lot sizes, typically only accessible to large banks and institutions trading over-the-counter (OTC). ETFs eliminate these barriers, allowing individual investors to buy and sell fixed income securities conveniently on the share market.

Discover the asset class below or download our fixed income guide for a more in-depth look covering everything you may need to consider before investing.

download Fixed income guide

What are Bonds?

Bonds are a common type of fixed income investment, representing debt issued by corporations or governments, to raise money or fund projects. When an investor purchases a bond, they are effectively lending money to the issuer with the expectation of receiving periodic interest payments and the return of the principal amount at the bond’s maturity.

  • Types of Bonds

  • Bond Payment Structures

  • The Capital Structure

The Risk Spectrum

Fixed income typically has a different risk and return profile from other asset classes. Unlike property and shares, which can be more volatile and growth-oriented, fixed income investments generally offer more stability and predictability at the expense of higher potential returns, making them a valuable component of a diversified
portfolio.

Why Fixed Income?

Fixed income provides three main benefits for investors.

  • Income Regularity

  • Diversification

  • Capital Preservation

Introducing BANK

BANK is an index-based ETF that invests in a diversified portfolio of Australian banking debt across the full capital structure excluding shares. It comprises fixed and floating-rate bonds, senior and subordinated debt (Tier 2 Capital), and hybrid securities (Additional Tier 1 Capital).

Attractive Yield

BANK pays monthly income and its index has historically offered higher yields than term deposits, government bonds and corporate bonds.

Convenient and Cost-Effective

A cost-effective package that holds three types or fixed income securities across the banking capital structure (senior bonds, subordinated bonds and hybrid securities) that can be used for income enhancement, capital preservation, and broader diversification.

Trusted Source of Income

Australian banks are known for being some of the most credible and robust financial institutions in the world. BANK is the only index based ETF offering exposure to the broader capital stack of Australia’s banks in one diversified solution.

Management Fee

0.25% (p.a.)

Benchmark

Solactive Australia Bank Credit Index

Factsheet

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Product Flyer

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Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

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