BetaShares’ Australian Investment Grade Corporate Bond ETF (CRED), launched just over four months ago, has been awarded a ‘RecommendedIndex’ rating from Lonsec.
In its review, Lonsec commended CRED as an “effective and easy to understand vehicle for investors to extract returns from the highest yielding part of the Australian Corporate Investment Grade universe.”
CRED provides investors with exposure to a portfolio of investment grade, fixed-rate Australian corporate bonds. At 0.25 per cent in management fees pa, CRED is also the lowest-cost Australian fixed-rate corporate bond ETF currently available on the ASX.
BetaShares Chief Executive Officer, Alex Vynokur, says CRED differs from the commonly used Australian fixed income benchmarks by selecting bonds based on the income returns that those bonds are generating.rather than debt outstanding.
“CRED has been designed to provide a core corporate fixed income offering with a forward-looking investment strategy to help investors to diversify their portfolios in a more competitive and efficient way than its current peers,” he says.
The Lonsec rating for CRED means every cash and fixed income product from BetaShares has been awarded either a “RecommendedIndex” or “Recommended” rating by Lonsec.