A diversified approach to Australian core bonds

Targeted core bond exposure

The State Street® SPDR® S&P®/ASX iBoxx Australian Bond ETF offers investors a diversified approach to Australian core bonds – designed to strike a more effective balance between credit exposure and interest rate risk.

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Why invest in BOND?

Investors may consider BOND for a number of reasons, including:

Core Australian bond exposure

BOND provides investors with broad access to investment grade Australian government and corporate bonds, offering a diversified approach to core fixed income.

Index design targets yield enhancement

Traditional market-value weighted Australian bond indices often underrepresent corporate bonds, limiting yield potential. The index tracked by BOND is designed to achieve a more balanced exposure between credit and interest rate risk — resulting in a modest uplift in yield.¹

Income generation

With quarterly distributions BOND may be used by investors seeking regular income from their fixed income allocation.

Low cost

With a low management expense ratio of 0.10% p.a. —that’s only $10 annually on a $10,000 investment—BOND helps investors keep more of what they earn.

50%

The weight of corporate bonds in BOND’s reference benchmark. ²

Our Fixed Income expertise

$1.11T

in fixed income assets ³

28 Yrs

of bond index investing

100+

fixed income strategies

Frequently asked questions

What is BOND?

BOND is the ticker symbol for the State Street® SPDR® S&P®/ASX iBoxx Australian Bond ETF — an exchange traded fund that seeks to tracks the performance of the S&P®/ASX iBoxx Australian Fixed Interest Diversified 0+ Index. Managed by State Street Investment Management, the fund uses a sampling approach, meaning it may not hold every bond in the index but aims to closely replicate its performance.

What are the key benefits of BOND?

What is the S&P®/ASX iBoxx Australian Fixed Interest Diversified 0+ Index?

What is special about BOND?

Where does BOND fit in a portfolio?

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Footnotes

Disclosures

Investing involves risk including the risk of loss of principal.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors’ express written consent.

All information is from State Street Global Advisors unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.

Investing involves risk including the risk of loss of principal. Diversification does not ensure a profit or guarantee against loss.

The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.