Vaneck Australian Fixed Rate Subordinated Debt ETF

Vaneck Australian Fixed Rate Subordinated Debt ETF holds 16 securities.

Its country exposure is almost entirely Australia (100.0%).

FSUB shares the most holdings with VanEck Australian Subordinated Debt ETF (SUBD) (81% overlap), Betashares Australian Bank Senior Floating Rate Bond ETF (QPON) (59% overlap) and Global X Australian Bank Credit ETF (BANK) (57% overlap). Overlap is the share of the portfolio the two funds hold in common, looking through to the underlying securities.

At 81%, owning both FSUB and SUBD would mostly double up on the same investments rather than spread your money further. Of these, QPON has the lowest fee, at 0.22% a year against 0.29% for FSUB.

Vaneck Australian Fixed Rate Subordinated Debt ETF is passively managed: it follows an index and holds what that index holds, rather than relying on a manager's stock picks.

Among Australian fixed income funds, active funds charge a median 0.43% a year and index funds 0.22%.

FSUB charges a management fee of 0.29% a year, about $29 for every $10,000 invested. That is cheaper than 69% of the 471 ASX ETFs we track, where the median fee is 0.44%. Among Australian fixed income funds, the median is 0.23%.

Lower-cost funds with a similar focus include Vanguard Australian Fixed Interest Index ETF (VAF) at 0.10%, iShares Core Composite Bond ETF (IAF) at 0.10% and Betashares Australian Investment Grade Bond ETF (CRED) at 0.25%.

If you would rather have a manager choose the investments, active options such as Betashares Australian Hybrids Active ETF (HBRD) at 0.55% and Betashares Western Asset Australian Bond Active ETF (BNDS) at 0.42% cost more.

The fee is taken from the fund's assets and is already reflected in its returns. You'll also pay brokerage when you buy or sell, and the bid-ask spread, which has averaged 0.10% for FSUB.

No. Vaneck Australian Fixed Rate Subordinated Debt ETF is a broad fixed income fund: it aims to cover a wide slice of its market (Australia) rather than one theme or sector.

The largest issuers among FSUB's holdings are Westpac Banking Corp (19.6% across 8 bonds), Australia & New Zealand Banking Group L (19.4% across 7 bonds), National Australia Bank Ltd (18.3% across 7 bonds), Commonwealth Bank Of Australia (16.1% across 7 bonds), Macquarie Bank Ltd (6.7% across 5 bonds), Hsbc Holdings Plc (3.9% across 2 bonds), Bpce Sa (2.6% across 2 bonds), Credit Agricole Sa (2.5%), Bnp Paribas Sa (2.3% across 2 bonds) and Lloyds Banking Group Plc (1.9%).

It follows an index; the issuer's PDS sets out how that index chooses and weights its holdings.

Based on its category, Vaneck Australian Fixed Rate Subordinated Debt ETF aims mainly to pay a regular income, with capital growth secondary.

FSUB doesn't have a full year of price history yet, so we can't judge its performance.

Tracking difference is the gap between a fund's return and its index's return. We don't hold index returns, so we can't measure it for FSUB; the issuer reports it in the monthly fact sheet. As a guide, a well-run index fund trails its index by about its fee, here 0.29% a year, and a much bigger gap is a warning sign.

Past performance is not a reliable indicator of future performance.