Bringing you live news and features since 2006 

BetaShares launches ETF tracking Solactive Australian Investment Grade Bond Select DH Index


Solactive writes that in a slower economic environment with expectations of market volatility, investors might look for a quality portfolio that offers attractive income with reduced interest rate risk.

The firm says that there are those who may turn to investment grade corporate bonds, which are quality bonds that receive high rates from credit rating agencies. Within this framework, Solactive has announced that the Australian ETF provider BetaShares has launched the BetaShares Interest Rate Hedged Australian Investment Grade Corporate Bond ETF, tracking the Solactive Australian Investment Grade Bond Select DH Index. The ETF was listed on the Australian stock exchange (ASX), with the ticker HCRD AU and ISIN AU0000247777.

The Solactive Australian Investment Grade Bond Select DH Index (SOLASIGH) tracks the performance of the Solactive Australian Investment Grade Corporate Bond Select Index (SOLAUSIG) while hedging its duration. The SOLAUSIG index provides exposure to AUD denominated non-government investment-grade bonds with a term to maturity between 5.25 and 10.25 years and includes up to 50 bonds selected based on option-adjusted spreads.

The duration hedge is performed by holding a rolling position of the ASX Treasury Bond Futures contracts. Given that movements in government bond yields typically are the largest contributor to the volatility of fixed rate corporate bonds, this hedging strategy aims to reduce volatility and capital variability of the affiliated bond portfolio.                

Latest News

Tradeweb Markets has announced it has launched a market data service to calculate real-time Indicative Net Asset Values (iNAVs) for..
Bloomberg has announced the launch of ETF list trading via its ETF Request for Quote service (RFQe), writing that it..
The iShares Listed Private Equity UCITS ETF is designed to offer investors access to large, liquid, and listed private equity..
State Street Corporation has announced the launch of a Financial Information eXchange (FIX) application programming interface (API) for its Fund..

Related Articles

Detlef Glow, head of Lipper EMEA Research at Refinitiv, has published the Refinitiv Lipper ‘European ETF Industry Review: 2022’ commenting that 2022 was a remarkable year for investors around the globe. ...
We are very pleased to open the voting for service providers (selected by nominations) and ETP issuers, selected by our data partners, Trackinsight, for the European ETF Express Awards, in...
Osprey Funds’ founder and CEO, Greg King, has written an open letter to Barry Silbert, majority owner of Digital Currency Group which owns Grayscale, suggesting that he uses his powers...
Comparing multifactor ETFs to the popular Marvel Avengers series may seem a bit of a stretch but recent analysis from Morningstar suggests the investment strategies have more in common with...
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