Mar 13

Corporate Bond ETF or Big 4 Bond ETF????

I was quite excited to see the launch of the new Russell Select Australian Corporate Bond fund over the past few days. I thought the ability to have a diversified Australian bond fund that has the ability to provide a bit of credit risk for a more diversified portfolio would be great.

Unfortunately when I looked at the portfolio the holdings were the following…

  • COMMONWEALTH BANK AUST …maturing 20 Feb 2014
  • AUST & NZ BANKING GROUP …maturing 10 Nov 2014
  • WESTPAC BANKING CORP …maturing 18 Aug 2014
  • WESTPAC BANKING CORP …maturing 18 Nov 2014
  • NATIONAL AUSTRALIA BANK  …maturing 19 Dec 2013
  • AUST & NZ BANKING GROUP …maturing 16 Jan 2014
  • WESTPAC BANKING CORP  …maturing 05 Mar 2014
  • COMMONWEALTH BANK AUST  …maturing 14 Jul 2014
  • NATIONAL AUSTRALIA BANK  …maturing 16 Sep 2014
  • COMMONWEALTH BANK AUST …maturing 21 Jul 2015

Oh well…not too diversified…just the big 4 banks…bummer, and back to the drawing board for me…I’m afraid at this stage Russell’s should look to rename their ETF to something that reflects the underlyings a little more closely.

   Send article as PDF   

Leave a Reply

Your email address will not be published.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

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Get every new post on this blog delivered to your Inbox.

Join other followers: