# QPON - BetaShares Australian Bank Senior Floating Rate Bond ETF



## qldfrog (26 June 2017)

Dear all, just for your information;
I found this new EFT interesting as a nicer and safer? way to park cash than a term deposit, without the usual bond risk, and reducing any potential interest rate rise.Any other opinion?


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## qldfrog (26 June 2017)

https://www.betashares.com.au/fund/australian-bank-floating-rate-bond-etf/
for the actual EFT site


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## thembi (26 June 2017)

qldfrog said:


> https://www.betashares.com.au/fund/australian-bank-floating-rate-bond-etf/
> for the actual EFT site



I use ETFs a great deal in my investing and find them a convenient way to get exposure to chosen investment strategies. I certainly think that investors who are looking for fixed income investors could do worse than to consider a floating rate bond exposure. As you say, fixed income using fixed rates are destined to fall in price when interest rates eventually rise, with floating rate bonds, you have none of this risk and will benefit from interest rate rises. The rate at 2.90% p.a. looks reasonably attractive and comparable with term deposits, and the fact that you don't have to lock up capital like TDs is useful.


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## qldfrog (26 June 2017)

thembi said:


> I use ETFs a great deal in my investing and find them a convenient way to get exposure to chosen investment strategies. I certainly think that investors who are looking for fixed income investors could do worse than to consider a floating rate bond exposure. As you say, fixed income using fixed rates are destined to fall in price when interest rates eventually rise, with floating rate bonds, you have none of this risk and will benefit from interest rate rises. The rate at 2.90% p.a. looks reasonably attractive and comparable with term deposits, and the fact that you don't have to lock up capital like TDs is useful.



my thoughts as well so I do owe some.Probably not a big requirement to disclose for an EFT but just so that people know.


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## Dona Ferentes (19 February 2022)

Some $690 million of net assets under issue. Average credit rating A+. Returns are skinny .... running yield 0.74%pa and all-in yield 0.52 percent


Mgmt Costs** (% p.a.) 0.22%Distribution Frequency    Monthly
 
Top 10 holdings                                                                                                                                                                                                                                                                                                                                     

COMMONWEALTH BANK OF AUSTRALIA FRN JAN-2410.5AUSTRALIA & NEW ZEALAND BANKING GROUP LTD FRN AUG-2410.5NATIONAL AUSTRALIA BANK LTD FRN AUG-2610.5WESTPAC BANKING CORP FRN AUG-2410.4AUSTRALIA & NEW ZEALAND BANKING GROUP LTD FRN JAN-2510.4BANK OF QUEENSLAND LTD FRN OCT-265.9MACQUARIE BANK LTD FRN DEC-255.2BENDIGO & ADELAIDE BANK LTD FRN DEC-255.2NATIONAL AUSTRALIA BANK LTD FRN FEB-274.9COMMONWEALTH BANK OF AUSTRALIA FRN AUG-234.6


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## divs4ever (19 February 2022)

Dona Ferentes said:


> Some $690 million of net assets under issue. Average credit rating A+. Returns are skinny .... running yield 0.74%pa and all-in yield 0.52 percent
> 
> 
> Mgmt Costs** (% p.a.)0.22%Distribution Frequency   Monthly
> ...



 although i have invested  in  bank ( and building society  ) hybrids , bonds and preference shares before  ( Basel III ) i am  averse to 'sausage debt ' ( learning the lessons from The Big Short  and CDOs ) i prefer to select them individually 

 but yes the returns are too skinny for me   i would be wanting nearer 10% pa  ESPECIALLY  for any tier 1 debt tucked away in there 

 and FRN  is a trailing increase  which means you never keep pace with rising inflation ( and when interest rates tumble they tend to redeem your bonds to limit your upside  at that time )


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