BHYB - Betashares Australian Major Bank Hybrids Index ETF

[frugal.rock]

Objective

BHYB aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of listed hybrid securities issued by Australia’s ‘Big 4’ banks.

Hybrids can be expected to produce risk and return characteristics above those of traditional fixed income securities like bonds but below those of ordinary shares.

Hybrids have complex terms of issue, may not be suitable exposures for all investors, and should only be considered as a component of an investor’s overall portfolio.

Management fees are 0.35% p.a. ($35 per year for every $10,000 invested)1. (see notes on website)

There are risks associated with an investment in BHYB, including dividend rate risk, credit risk, hybrids complexity risk and sector concentration 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 on this website.

Australian Major Bank Hybrids Index ETF

Access high-yield hybrid securities issued by Australia's 'Big 4' banks. Invest in BHYB through Betashares Direct with zero brokerage. Other costs may apply.

www.betashares.com.au

 

[Dona Ferentes]

There are risks associated with an investment in BHYB, including dividend rate risk, credit risk, hybrids complexity risk and sector concentration risk. Investment value can go up and down.

One that I wouldn't hold, especially in the current uncertainty about CET1 or AT1 status .

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.

Not even that.

 

[InsvestoBoy]

One that I wouldn't hold, especially in the current uncertainty about CET1 or AT1 status .

Not even that.

Don't get the two terms mixed up.

CET1 is a capital ratio.

AT1 is a fancy name for a convertible bond that financial institutions use as a mechanism to raise funds for contribution to their capital ratio.

There's no uncertainty about CET1 status, it's just a numerator and denominator. There's also no uncertainty about the status of capital raised by an AT1 contributing to CET1 status.

As for the uncertainty of AT1s themselves, as always, read the prospectus carefully to avoid it.

 

[frugal.rock]

To be clear, none of it was my doing, it was all off the posted website of Betashares

 

[frugal.rock]

Chart update.

 

[divs4ever]

One that I wouldn't hold, especially in the current uncertainty about CET1 or AT1 status .

yes , i agree on that

a further dilemma with me is the 'mix&match ' composition of these style ETFs i preferred digging DEEP into each hybrid i am buying into ( sort of a reverse KYC )