BetaShares Australian Bank Senior Floating Rate Bond ETF

BetaShares has launched the BetaShares Australian Bank Senior Floating Rate Bond ETF (ASX:QPON) (the Fund), to offer investors exposure to a diversified portfolio of bank floating rate bonds.

The Fund invests 80% of its assets in floating rate bonds issued by the big four Australian banks, with the remaining 20% invested in bonds issued by large 'regional' banks.

Commenting on the launch, BetaShares managing director, Alex Vynokur, said: "In the current environment of historically low interest rates, we believe the case for investing in floating rate bonds is very compelling. In the US, the Federal Reserve has raised interest rates twice in the past six months in the effort to return monetary policy to a more normal footing. In Australia, the last increase in the cash rate by the Reserve Bank was in November 2010, while the current cash rate is at historic lows."

The Fund aims to track the performance of the Solactive Australian Bank Senior Floating Trade Bond Index, which is currently yielding 2.87% p.a. (before fees).