IAF - iShares CORE Composite Bond ETF

On February 5th, 2014, iShares UBS Composite Bond Index Fund changed its name to iShares UBS Composite Bond ETF.

http://au.ishares.com/fund/fund-overview-IAF-ASX.do

Re: IAF - iShares Composite Bond ETF

On October 1st, 2014, iShares UBS Composite Bond ETF changed its name to iShares Composite Bond ETF.

On May 3rd, 2016, iShares Composite Bond ETF changed its name to iShares CORE Composite Bond ETF.

Market Matters pick out of the bond etfs it looked at today.

"The Bottom Line:

Of the 5 ETFs looked at today, our preference is the iShares Core Composite Bond ETF (IAF), followed by the BetaShares Australian Major Bank Subordinated Debt ETF (BSUB).

iShares Core Composite Bond ETF (IAF) $102.94

This is a diversified ETF that has a broad cross section of holdings including investment-grade fixed-income securities issued by the Australian Treasury, Australian semi-government entities (States and others), supranational and sovereign entities and corporate entities. Basically, it’s a broad portfolio of high-quality bonds mostly issued by government, or agencies that have some sort of implied or actual government backing, blended with a few corporates. As a guide, 47% of the portfolio is Australian Commonwealth debt & 32% in State Governments.

Advantage: Low cost (0.1%) diversified exposure to Australian investment-grade securities, primarily Govt debt, distributions are paid quarterly, and the last 12 months has seen a 7% return.
Disadvantage: This is a fixed rate exposure, so if rates rise, this security will fall. Over the past 5-years, the return is -0.3% per annum (given interest rates have risen during that time frame.
We like the IAF for low-risk bond exposure, that will benefit in a falling interest rate environment: We hold the IAF in the Core ETF Portfolio."

Not Held
Considering
Momentum uptrending

MONTHLY All Data

retail investors may go for these funds if their view is of volatile equity markets and the phasing out of the $43 billion bank hybrid market; otherwise private credit is blowing its trumpet.... ( Debt for equity swaps, a rise in bad debts and loan losses may hit credit quality, and conditions may be improved by falling rates )