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BANK

Australian Bank Credit ETF

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Reasons to Consider BANK

Attractive Yield

BANK expects to pay 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 of 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.

Product Information As of 17 Jan 2025

Inception Date 22 Jul 2024
Management Costs (% p.a.) 0.25
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Scheme
SMSF Eligible Yes

NAV Information As of 17 Jan 2025

NAV/Unit (A$) 10.04640000
iNAV 10.0485
iNAV as of 04:59 PM
Currency (NAV) AUD
Shares Outstanding 4,101,319
AUM (A$) 41,203,508.09
NAV History File View

Product Summary

The Global X Australian Bank Credit ETF (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).

Product Objective

The Global X Australian Bank Credit ETF (BANK) aims to provide investors a return (before fees and expenses) that tracks the performance of the Solactive Australian Bank Credit Index, a published index, by holding a portfolio of Bonds and Hybrid Securities that may comprise all or a representation of the securities comprising the Index, or other eligible assets as determined by the Responsible Entity.

Trading Details

Ticker BANK
Bloomberg Code BANK AU Equity
ISIN AU0000340952
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited
Trustee Global X Management (AUS) Limited

Benchmark Information

Benchmark Solactive Australian Bank Credit Index
Provider Solactive AG
Ticker SOLAUBCI

Distributions As of 31 Dec 2024

12-Month Yield 2.04%
12-Month Franking Level 16.45%
Distribution Frequency Monthly
Distribution History View

Portfolio Characteristics As of 17 Jan 2025

Running Yield (%) 6.11
Yield to Call/Maturity (%) 5.31
Average Coupon (%) 6.26
Modified Duration (%) 1.04
Credit Spread Duration (%) 3.18
Time to Call/Maturity (Yrs) 3.74

Performance Table As of 17 Jan 2025

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month 0.39% 0.32% 0.08% 0.10%
3 Months 0.92% 0.90% 0.01% 0.11%
1 Year -- -- -- --
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception 2.53% 2.59% -0.05% 0.12%

Top Holdings As of 20 Jan 2025

Full Holdings (.xlsx)
Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
2.29 NABPH BLH3Q88 104.76 8,959 938,545
2.15 NABPF BFZ5736 103.87 8,486 881,441
2.13 NABPI BM8B5M5 105.00 8,312 872,760
2.00 WBCPM BPSLNF5 105.65 7,746 818,365
1.99 WBCPJ BM9GFC9 103.50 7,890 816,615
1.95 CBAPK BJLTVF0 103.45 7,721 798,730
1.95 CBAPI BKPFP60 103.22 7,744 799,336
1.92 CBAPL BNNJRY7 103.22 7,613 785,814
1.89 AN3PL BLFBYN5 104.34 7,440 776,297
1.78 WBCPL BQ3R1X9 105.00 6,948 729,540
1.74 WSTP Float 01/29/31 BN4N6Z2 102.10 700 714,681
1.69 AN3PI BM8PG68 103.70 6,696 694,375
1.68 AN3PK BNDVPT4 103.02 6,705 690,749
1.67 CBAPM BMQ7DR6 104.95 6,507 682,897
1.66 WBCPK BMYH2P9 103.97 6,547 680,692
1.52 CBAAU Float 01/14/27 BP6FTR3 100.29 620 621,815
1.51 NAB Float 02/09/34 BSMP3K9 103.09 600 618,538
1.47 WSTP Float 09/19/29 BRSCXZ2 100.66 600 603,931
1.46 ANZ Float 09/11/28 BRJ53X8 101.14 590 596,740
1.45 CBAAU Float 01/13/26 BQ1JFZ7 100.54 590 593,179
1.44 NABPJ BN0X8L6 104.10 5,681 591,392
1.43 CBAAU 6.152 11/27/39 BR84PG3 102.56 570 584,568
1.42 CBAAU Float 10/25/33 BLC8DL0 103.91 560 581,893
1.42 ANZ Float 01/16/34 BPQX483 101.95 570 581,108
1.41 AN3PJ BM8NWY2 103.18 5,605 578,324
1.38 CBAAU Float 01/13/28 BQ1JG09 101.32 560 567,399
1.35 WSTP 7.199 11/15/38 BLGYH67 110.87 500 554,339
1.35 ANZ Float 05/16/33 BPYTLY8 104.50 530 553,840
1.34 CBAAU 6.446 10/25/33 BLC8FH0 105.40 520 548,080
1.33 NAB Float 11/14/29 BPLQJP9 101.01 540 545,448
1.25 ANZ 6.736 02/10/38 BMWPVR0 109.44 470 514,370
1.23 WSTP Float 01/15/29 BPCRM18 100.82 500 504,110
1.23 NAB Float 08/24/26 BMFBSN0 100.56 500 502,819
1.17 ANZ 5.888 01/16/34 BPQX438 101.89 470 478,894
1.15 NAB Float 10/18/27 BR4TCN8 100.05 470 470,216
1.11 CBAAU 6.704 03/15/38 BQ0KBB9 108.53 420 455,812
1.09 ANZ 5 06/18/29 BSB7RR1 101.23 440 445,401
1.08 NAB 6.163 03/09/33 BQXHX77 105.02 420 441,065
1.07 BENAU Float 01/27/27 BKSHQ48 102.51 430 440,790
1.06 WSTP 6.934 06/23/38 BNDC0V4 108.28 400 433,110
1.06 NAB Float 02/25/27 BN6V4Q1 101.03 430 434,415
1.02 NAB 6.342 06/06/39 BMDQW24 104.15 400 416,601
1.01 WSTP Float 06/23/33 BNDBMX7 103.67 400 414,698
0.90 MQGAU 6.082 06/07/32 BN2S745 102.39 360 368,595
0.90 CBAPJ BMG5DK3 102.30 3,611 369,405
0.86 NAB Float 05/10/27 BSMRQL7 101.13 350 353,964
0.86 ANZ Float 03/31/28 BNVXJS9 101.28 350 354,484
0.85 NAB 6.322 08/03/32 BMZNPQ8 105.80 330 349,132
0.85 NAB 4.4 05/12/28 BR86Q22 99.98 350 349,913
0.84 SUNCBK Float 05/18/26 101.60 340 345,442
0.82 NAB 4.95 05/10/27 BSMRQM8 101.77 330 335,843
0.80 SUNCBK Float 12/14/27 BNQSBT4 101.89 320 326,058
0.75 WSTP 5.972 07/10/34 BT5JH36 102.27 300 306,798
0.74 WSTP Float 01/25/27 BL6BV11 101.41 300 304,242
0.74 NAB Float 05/12/26 BPLL697 101.34 300 304,024
0.74 CBAAU Float 08/20/31 BLNM0Y3 101.59 300 304,765
0.69 CBAAU Float 08/17/26 BPLVCN3 101.26 280 283,538
0.67 NAB Float 05/12/28 BR86R30 101.81 270 274,880
0.66 NAB Float 03/22/29 BSKP497 100.83 270 272,229
0.66 MBLPD BMYXPY7 104.02 2,608 271,284
0.65 MQGAU Float 03/01/34 BPJN4Z7 102.32 260 266,024
0.65 BQDAU Float 04/30/29 BP9RX74 102.15 260 265,601
0.65 ANZ Float 02/05/29 BN7B4M6 101.75 260 264,539
0.63 NAB Float 11/18/31 BK8ZSL3 102.99 250 257,482
0.62 CBAAU 6.86 11/09/32 BQGHZT0 105.83 240 254,001
0.62 CBAAU Float 04/14/32 BKZ7890 101.93 250 254,825
0.61 CBAAU Float 12/23/26 BMCQ225 100.08 250 250,208
0.60 NAB 2.9 02/25/27 BN6V4S3 97.82 250 244,550
0.59 ANZ Float 06/18/29 BS52KF1 100.72 240 241,730
0.58 CBAAU 2.4 01/14/27 BP6FTH3 95.96 250 239,896
0.57 NAB Float 11/16/28 BMGBFN8 101.84 230 234,232
0.57 ANZ 6.405 09/20/34 BP69MB0 106.01 220 233,233
0.56 ANZ Float 06/18/27 BS52KG2 100.59 230 231,351
0.54 CBAAU Float 08/17/28 BRBDTJ8 101.59 220 223,494
0.54 ANZ 5.906 08/12/32 BM8NYB3 104.51 210 219,463
0.52 ANZ Float 05/12/27 BN7T5C7 101.76 210 213,690
0.51 NAB 5.74 02/09/34 BSMP3L0 103.86 200 207,727
0.51 MQGAU 5.953 03/01/34 BPK63C5 103.76 200 207,522
0.51 CBAAU Float 11/09/32 BQH7XP1 105.45 200 210,904
0.50 WSTP 5.1 05/14/29 BRS8G40 102.16 200 204,311
0.50 WSTP Float 11/11/27 BNM9T64 102.51 200 205,011
0.50 WSTP Float 05/20/27 BMWWBB5 101.82 200 203,636
0.50 WSTP Float 04/03/34 BKVG6Y2 101.95 200 203,907
0.50 WSTP Float 02/16/28 BMZPGP0 101.67 200 203,331
0.50 NAB 5 11/14/29 BPLQJN7 101.65 200 203,299
0.50 NAB 4.95 11/25/27 BP7NL81 101.57 200 203,143
0.50 MQGAU Float 02/20/35 BMYQ0Z2 101.94 200 203,887
0.50 ANZ Float 02/26/31 BLB23Y6 102.07 200 204,137
0.49 WSTP 5 01/15/29 BPCRM29 100.98 200 201,952
0.49 WSTP Float 12/15/26 BPCRM07 100.96 200 201,913
0.49 WSTP Float 09/19/28 BNQNJT5 101.03 200 202,069
0.49 WSTP Float 08/10/26 BRZVTC1 101.35 200 202,692
0.49 WSTP Float 07/10/34 BT5JH58 100.95 200 201,900
0.49 WSTP Float 05/14/29 BRS8G39 101.30 200 202,604
0.49 WSTP Float 02/16/26 BMZPGR2 101.20 200 202,398
0.49 SUNCBK Float 09/15/26 BMYR754 100.31 200 200,612
0.49 SUNCBK Float 01/25/27 BNNWHZ7 101.48 200 202,958
0.49 MQGAU Float 06/17/31 BMFZK70 101.17 200 202,342
0.49 CBAAU 5 01/13/28 BQ1JFY6 101.06 200 202,117
0.49 CBAAU Float 08/22/29 BRXF2G0 101.15 200 202,304
0.49 ANZ Float 12/15/27 BLGTZN5 100.44 200 200,881
0.49 ANZ Float 09/11/26 BRJ53S3 100.92 200 201,849
Holdings are subject to change.

Sector Breakdown As of 20 Jan 2025

Sector Weight (%)
Senior 38.7
Hybrid 31.2
Subordinated 30.1

Issuer Breakdown As of 20 Jan 2025

Issuer Weight (%)
National Australia Bank 25.2
Commonwealth Bank Of Australia 23.9
Westpac Banking Group 22.7
Australia And New Zealand Banking Group 20.2
Macquarie Bank 3.7
Suncorp Metway 2.6
Bendigo And Adelaide Bank 1.1
Bank Of Queensland 0.7

Research

Australia’s Fixed Income Revolution: How Bond ETFs Are Changing the Game

Read More

Introducing the Global X Australian Bank Credit ETF (ASX: BANK)

Read More

X-Plained: How to Invest in Australian Bank Credit

Read More

Documents

FAQs

  • What types of credit securities does the Global X Australian Bank Credit ETF (BANK) invest in and how are the holdings weighted?

    The BANK ETF invests in fixed income securities across the capital structure from Australian banks (i.e. bank credit). The capital structure refers to the mix of debt and equity used to finance a company's operations. Banks must maintain a minimum amount of capital for economic or financial shocks and each level of the capital structure provides a line of defense to protect investors. Securities at the top of the structure have a lower risk and return profile due to their higher payment priority in case of insolvency.

    BANK invests in three types of credit securities:

    • Senior Bonds: These have the highest repayment priority in liquidation, second only to term deposits, making them the safest type of corporate debt.
    • Subordinated Debt: Known as Tier 2 Capital, these rank below senior bonds in repayment priority. They are riskier than senior bonds but typically offer higher yields and have floating rate coupons.
    • Hybrids: Known as Tier 1 Capital, these combine features of both debt and equity. Due to their complex structure and additional risk, hybrids typically offer higher yields than senior and subordinated bonds and provide investors with after-tax benefits of franking credits.
    BANK has a target weight of 40% senior bonds, 30% subordinated debt, and 30% hybrids. The 40/30/30 portfolio weighting allocation was designed methodically because it has historically delivered better risk-adjusted returns and a higher yield profile without taking on excessive duration or credit risk.

  • What are the selection criteria and which banks will the fund offer exposure to?

    BANK tracks the Solactive Australian Bank Credit Index, designed to track the performance of AUD-denominated Australian senior and subordinated bonds and hybrids issued by APRA-regulated Authorised Deposit-Taking Institutions (ADIs). The securities must have at least $500 million outstanding in value, and a minimum of one year to call/maturity at each rebalance date. Corporate bonds must also be rated at least investment grade.

    BANK provides exposure to credit securities issued by the "Big Four" Australian banks (Westpac, NAB, CBA, ANZ) as well as a diverse set of other Australian banks such as Macquarie, Suncorp, Bank of Queensland, and Bendigo & Adelaide Bank.1

    1. Solactive as of June 2024

  • What is the interest rate or yield of BANK?

    As of June 2024, the running yield of BANK is 5.9% per year with a yield to maturity of 5.5% per year.2 By having exposure to a diverse array of fixed income securities, BANK’s index has historically offered higher yields than term deposits, government bonds and corporate bonds. The interest paid by the securities in BANK to investors is subject to change over time given most securities have a floating rate nature which may move based on interest rate changes.

    2. Solactive, Bloomberg as of June 2024

  • How frequently is income paid and does it include franking credits?

    Income is expected to be paid monthly to investors. Only the hybrid securities within the portfolio may be eligible to pay franking credits.

  • How does BANK fit into a diversified portfolio?

    BANK can be used as a core fixed income solution that provides broad allocation within the Australian fixed income category to act as a defensive income source. Incorporating various types of capital structure securities into a portfolio via one solution like an ETF can contribute to a more stable return profile due to their lower correlations with other asset classes, decreased volatility, and income regularity. BANK provides exposure to higher yielding alternatives to bank deposits while mitigating interest rate risk by having a lower duration profile and focusing on capital stability.

  • What are some of the potential risks of investing in BANK?

    BANK’s underlying securities are generally considered a lower-risk asset class compared to growth assets like shares or property. However, the main risks associated with the securities that BANK invests in include:

    • Interest rate risk - When interest rates rise, prices of debt securities typically fall. This is more common for longer-duration securities, of which BANK does not have a large exposure to. Existing fixed-rate corporate bond prices experience price declines, while floating rate coupon payments may also change based on the base level of interest rate.
    • Inflation risk - Generally erodes the purchasing power and real value of the coupon payments that bonds make.
    • Credit risk - An issuing bank may default on interest or principal payments, impacting the bond's value. A downgrade in the issuer's credit rating can also cause bond prices to drop, reflecting an increased risk of default. Although credit risks exist, Australian banks are considered some of the safest in the world and have the highest capital ratios among global peers.3
    • Liquidity risk - There may be a risk that a bond may not be easily sold at its market value due to low trading volume, as most bonds don’t trade on public exchanges.
    • Regulatory risk - Changes in laws and regulations can impact bond markets and issuers as new regulations may impact an issuer’s ability to meet its fixed interest obligations or alter broader market operations and dynamics.

    3. S&P Banking Industry Country Risk Assessment (BICRA) and Capital Ratios of Australian major banks vs Globally Systematically Important Banks (G-SIBS) according to data from Bloomberg.

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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