Enhancing Australian Fixed Income Indexing

Photo of Tom Wickenden
Written By Tom Wickenden
Photo of Tom Wickenden

Tom Wickenden

Tom Wickenden works as an investment strategist in Betashares investment strategy and research team. Tom is responsible for supporting both the sales and marketing teams across Betashares’ wide range of funds including all major asset classes. Prior to Betashares Tom worked in an accounting firm in London specialising in the fields of audit and forensic accounting. Tom has a Bachelor of Commerce majoring in Economics and Accounting from the University of Sydney and is currently a level 3 CFA candidate.

Markets

26 March 2025

1 minutes reading time

Better investing starts here
Get Betashares Direct
Betashares Direct is the new investing platform designed to help you build wealth, your way.
Scan the code to download.
Learn more
Learn more
Download on the App Store
 
 Get it on Google Play
 

For many Australian investors, traditional fixed income is a challenging asset class to navigate, which has led to an over-reliance on broad, simplistic market indices that are arguably inefficient as an investment strategy or for performance benchmarking.

The two main culprits causing the inefficiencies in these traditional benchmarks are liability-weighted indexing and the inclusion of bonds with less than one year to maturity.

To address these shortcomings, in partnership with Bloomberg, Betashares has co-developed the Bloomberg Australian Enhanced Yield Composite Bond Index, which the Betashares Australian Composite Bond ETF (ASX: OZBD) aims to track.

In this paper we discuss why we assert that this index provides a superior and more optimised solution for benchmarking fixed-rate bonds denominated in Australian dollars (AUD).

Read the full paper here.

This article mentions the following funds

OZBD

Australian Composite Bond ETF
keyboard_arrow_down

Attractive income from diversified Australian bonds
Learn more
keyboard_arrow_down
Invest with us
arrow_left_alt
arrow_right_alt
Photo of Tom Wickenden

Written By

Tom Wickenden
Investment Strategist
Tom Wickenden works as an investment strategist in Betashares investment strategy and research team. Tom is responsible for supporting both the sales and marketing teams across Betashares’ wide range of funds including all major asset classes. Prior to Betashares Tom worked in an accounting firm in London specialising in the fields of audit and forensic accounting. Tom has a Bachelor of Commerce majoring in Economics and Accounting from the University of Sydney and is currently a level 3 CFA candidate. Read more from Tom.
keyboard_arrow_down

Explore

Markets

Leave a reply

Your email address will not be published. Required fields are marked *

Previous article
Next article