Bringing you live news and features since 2006 

Solactive launches Australian investment grade corporate bond index

RELATED TOPICS​

Index provider Solactive has launched the Solactive Australian Investment Grade Corporate Bond Select TR Index used as the basis for yesterday’s news of the BetaShares Australian Investment Grade Corporate Bond ETF (“CRED”).

The index seeks to replicate the performance of a portfolio of investment grade, senior corporate bonds denominated in Australian dollars (AUD).
Solactive writes that the index methodology will favour securities offering superior expected excess returns over Australian government bonds. By selecting bonds based upon expected returns rather than debt outstanding, the index methodology seeks to avoid shortcomings of traditional debt-weighted indices and provide relatively higher returns.
 
Timo Pfeiffer, Head of Research at Solactive, says: “The Solactive Australian Investment Grade Corporate Bond Select TR Index is an addition to our range of smart beta indices in the fixed-income space. We are very happy to partner up with BetaShares, one of the leading players in the Australian ETF market, and increase the portfolio of investment strategies targeting Australian investors.”
 
Solactive has previously teamed up with BetaShares on the launch of the Solactive Australia 200 Index underlying BetaShares Australia 200 ETF. The Solactive Australian Investment Grade Corporate Bond Select TR Index is the latest fixed-income index developed together with BetaShares, following the Solactive Australian Bank Senior Floating Rate Bond Index and the Solactive Australian Hybrid Securities Index.
The Solactive Australian Investment Grade Corporate Bond Select TR Index is calculated as a total return index. Each security is assigned an equal weight, with a maximum weight per issuer of 7 per cent.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by