Australian 3-Year Bond Yield
We sold MGR in late 2025 believing that it was “as good as it gets” for the doves with further rate cuts built into stocks, while in our opinion, the economic data was starting to paint a different picture.
BetaShares Australian Composite Bond ETF (OZBD)
OZBD $43.02
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Performance
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Share price activity
Displays share price activity. Volume = number of shares traded, Turnover = value of shares traded, VWAP = volume-weighted average price for the day, sourced from Morningstar.
- Last (Price)
- 43.02
- Change
- ▼ -0.24 (-0.55)
- Bid / Ask
- 42.96 - 43.26
- Volume
- 34,360
- Turnover
- 1,477,996
- Open
- 42.96
- Day Range
- 42.95 - 43.04
- VWAP
- 43.02
- Prev Close
- 43.26
- Last Trade
- 02/11 3:59pm
Fund profile
Displays who issues the fund, how it is structured and invests, its Morningstar category and benchmark, size, headline costs and dates, sourced from Morningstar. Fund size counts every class of the fund; ETF net assets is this listing alone.
Fund size
$1.12B
OCT 2026
Total cost ratio
0.19%
per year
Distributions
Monthly
Since inception
4.7 yrs
FEB 2022
- Legal name
- BetaShares Australian Composite Bond ETF
- Issuer
- BetaShares Capital Ltd
- Type
- Exchange-Traded Fund
- Structure
- Open Ended Investment Company
- Management style
- Index fund
- Morningstar category
- Bonds - Australia
- Category index
- Bloomberg AusBond Composite 0+Y TR AUD
- Benchmark
- Bloomberg Aus Enh Yld Comp Bond TR AUD
- ETF net assets
- $1.12B
- Units on issue
- 37.0M
- Management fee
- 0.19% p.a.
- Domicile
- Australia
- Base currency
- AUD
- ISIN
- AU0000202756
- Inception
- 4 FEB 2022
- Listed
- 4 FEB 2022
Objective and strategy
The investment objective of the Fund is to provide an investment return that aims to track the performance of the Bloomberg Australian Enhanced Yield Composite Bond lndex, before taking into account fees and expenses.
Asset allocation · 30 SEP 2026
Displays how the fund is split between shares, bonds, cash and other assets, sourced from Morningstar.
US equity 0.00%Non-US equity 0.00%
| Asset class | Net % | Long % | Short % |
|---|---|---|---|
| Equity | 0.00 | 0.00 | — |
| Bond | 100.00 | 100.00 | — |
| Cash | 0.00 | 0.00 | — |
| Other | 0.00 | 0.00 | — |
Portfolio statistics · 30 SEP 2026
Displays the valuation, yield, size, concentration and quality of the fund's shareholdings taken together (trailing twelve months), sourced from Morningstar.
- Assets in top 10
- 10.84%
Top holdings · top 10 = 10.99% of assets
Displays the fund's ten largest holdings and their weight in the portfolio, sourced from Morningstar.
| Holding | % Weight | First bought | Market value | Currency | Units held | Sector | Country | |
|---|---|---|---|---|---|---|---|---|
| International Bank for Reconstruction & Development 4.2% | 1.18 | — | 17.1M | AUD | 18.2M | — | Supranational | |
| International Bank for Reconstruction & Development 5% | 1.17 | — | 17.0M | AUD | 17.0M | — | Supranational | |
| Commonwealth Bank of Australia 6.704% | 1.14 | — | 16.5M | AUD | 16.1M | — | Australia | |
| Australia (Commonwealth of) 2.75% | 1.13 | — | 16.4M | AUD | 19.5M | — | Australia | |
| Australia (Commonwealth of) 4.25% | 1.13 | — | 16.3M | AUD | 17.4M | — | Australia | |
| Australia (Commonwealth of) 3% | 1.12 | — | 16.2M | AUD | 18.3M | — | Australia | |
| Australia (Commonwealth of) 3.75% | 1.08 | — | 15.6M | AUD | 17.6M | — | Australia | |
| Australia (Commonwealth of) 4.25% | 1.03 | — | 14.8M | AUD | 15.9M | — | Australia | |
| Australia (Commonwealth of) 3.75% | 1.01 | — | 14.6M | AUD | 15.8M | — | Australia | |
| Australia (Commonwealth of) 3.5% | 1.00 | — | 14.5M | AUD | 16.1M | — | Australia |
Trailing returns · 30 SEP 2026
Displays total returns after fees at net asset value, the return at the ASX market price, the return before fees, and where the fund ranks among funds in its Morningstar category, sourced from Morningstar.
Fund (NAV) Market price
1M
-4.1
3M
-1.7
6M
2.5
YTD
4.7
1Y
3.8
3Y
6.7
| Period | Fund (NAV) % | Market price % | Before fees % | Rank in category |
|---|---|---|---|---|
| 1 month | -4.06 | -3.93 | -4.04 | 87 / 106 |
| 3 months | -1.71 | -1.65 | -1.66 | 87 / 105 |
| 6 months | 2.52 | 2.58 | 2.62 | 66 / 104 |
| Year to date | 4.67 | 5.01 | 4.81 | 76 / 104 |
| 1 year | 3.85 | 4.16 | 4.05 | 81 / 104 |
| 3 years p.a. | 6.75 | 6.82 | 6.95 | 16 / 93 |
Returns to 30 SEP 2026, periods of 3 years and longer annualised. Rank is the percentile in the Morningstar category at 30 SEP 2026 (1 = best) over the funds ranked.
Calendar year returns
Displays the total return after fees and the capital (price) return for each calendar year, with the fund's rank in its Morningstar category, sourced from Morningstar.
Total Capital
2023
10.1
2024
3.3
2025
4.4
| Year | Total % | Capital % | Rank in category |
|---|---|---|---|
| 2025 | 4.45 | -0.52 | 36 / 124 |
| 2024 | 3.31 | -0.09 | 27 / 117 |
| 2023 | 10.06 | 3.00 | 10 / 117 |
Financial year returns
Displays the total return after fees for each financial year to 30 June, sourced from Morningstar.
FY23
2.1
FY24
4.8
FY25
7.8
FY26
1.7
| Financial year | Total % |
|---|---|
| Financial year to date | -2.12 |
| Year to 30 JUN 2026 | 1.75 |
| Year to 30 JUN 2025 | 7.77 |
| Year to 30 JUN 2024 | 4.81 |
| Year to 30 JUN 2023 | 2.11 |
Risk statistics · 30 SEP 2026
Displays how the fund has moved relative to its category index: alpha (return beyond the index), beta (sensitivity to it), R-squared (how much the index explains), volatility and risk-adjusted returns, sourced from Morningstar.
| 1 year | 3 years | 5 years | 10 years | |
|---|---|---|---|---|
| Alpha | 0.33 | 0.67 | — | — |
| Beta | 1.22 | 1.20 | — | — |
| R-squared | 99.43 | 99.28 | — | — |
| Standard deviation | 11.69 | 12.12 | — | — |
| Sharpe ratio | -1.35 | 0.05 | — | — |
| Sortino ratio | -1.48 | -0.02 | — | — |
| Tracking error | 0.73 | 0.88 | — | — |
| Information ratio | -0.97 | 0.65 | — | — |
| Upside capture % | 116.27 | 118.21 | — | — |
| Downside capture % | 129.81 | 120.86 | — | — |
| Maximum drawdown % | -2.25 | -2.30 | — | — |
Measured against Bloomberg AusBond Composite 0+Y TR AUD with RBA Bank accepted Bills 90 Days as the risk-free rate, to 30 SEP 2026. Maximum drawdown is on gross returns at the latest quarter end.
Portfolio risk score
Displays Morningstar's Portfolio Risk Score for the fund's holdings, how closely the ETF tracks its index day to day, the estimated cost of holding it against the index, the cost of trading it at market size, and its best and worst quarters since inception, sourced from Morningstar.
Risk score
25.2
Cash 0
Global shares 100
Morningstar Portfolio Risk Score at 30 SEP 2026.
- Market impact cost %
- 0.015
- Best quarter
- 7.39% · JAN 2024
- Worst quarter
- -7.58% · MAY 2022
Fees and costs
Displays the fund's ongoing costs as a percentage of assets per year: the PDS management fees and costs, performance fee and transaction costs that make up the total cost ratio (the RG 97 forward estimate, and what was charged last financial year), and the buy / sell spread, sourced from Morningstar.
- Management fees and costs
- 0.19% p.a.
- Transaction costs
- 0.00% p.a.
- Total cost ratio
- 0.19% p.a.
- Total cost ratio (last FY)
- 0.19% p.a.
- PDS dated
- 26 MAY 2026
Distributions
Displays the most recent distribution paid per unit and its key dates, sourced from Morningstar.
- Latest distribution
- 0.1885
- Ex Date
- 1 OCT 2026
- Record Date
- 2 OCT 2026
- Pay Date
- 16 OCT 2026
- NAV at ex date
- 42.53
- Paid this year
- 1.8906
Distributions by year
Displays the total distributions paid per unit in each calendar year, sourced from Morningstar.
2024
1.8
2023
1.7
2022
1.6
2021
1.1
| Year | Per unit ($) |
|---|---|
| 2024 | 1.7567 |
| 2023 | 1.7124 |
| 2022 | 1.6303 |
| 2021 | 1.1478 |
Distribution history
Displays the most recent distributions by ex date, sourced from Morningstar.
| Ex Date | Per unit ($) |
|---|---|
| 2 NOV 2026 | 0.1963 |
| 1 OCT 2026 | 0.1885 |
| 1 SEP 2026 | 0.1900 |
| 3 AUG 2026 | 0.1911 |
| 1 JUL 2026 | 0.1799 |
| 1 JUN 2026 | 0.1615 |
| 1 MAY 2026 | 0.1577 |
| 1 APR 2026 | 0.1665 |
| 2 MAR 2026 | 0.1417 |
| 2 FEB 2026 | 0.1508 |
| 2 JAN 2026 | 0.1666 |
| 1 DEC 2025 | 0.1345 |
Sustainability rating · 31 AUG 2026
Displays the Morningstar Sustainability Rating (1 to 5 globes, more is better) and the portfolio ESG risk score behind it (lower is less risk), against the average of the fund's global category, sourced from Morningstar and Sustainalytics.
Above Average
ESG risk score
16.00
Negligible
Low
Medium
High
Severe
Category average 17.42
- Rank in category
- 22nd percentile of 94 funds
- Environmental risk
- 3.26
- Social risk
- 6.32
- Governance risk
- 4.13
- Portfolio covered
- 82.4%
ESG risk of holdings
Displays the share of the covered portfolio held in companies with negligible, low, medium, high and severe ESG risk, sourced from Morningstar and Sustainalytics.
- Negligible
- 23.75%
- Low
- 48.93%
- Medium
- 22.01%
- High
- 5.31%
- Severe
- 0.00%
0.07% of assets are in companies with high or severe controversies.
Carbon · 31 AUG 2026
Displays the portfolio carbon risk score (lower is less exposure to the transition to a low-carbon economy), the share of the portfolio in companies with fossil fuel revenue, and whether the fund earns Morningstar's Low Carbon Designation, sourced from Morningstar and Sustainalytics.
Carbon risk score
8.74
Low
Medium
High
Severe
Category average 8.79
- Carbon risk
- Low Risk
- Fossil fuel involvement
- 6.91%
- Category average
- 6.99%
- Portfolio covered
- 57.2%
Fund managers
Displays the people Morningstar lists as managers of the fund, sourced from Morningstar.
- Chamath De Silva
- Jing Jia
- Parker Guan
- Louis Crous
- Anthony Sayers
Tenure
Displays how long the managers have run the fund: the average and longest tenure, who has served longest, the latest appointment and how many other funds the team manages, sourced from Morningstar.
- Number of managers
- 5
- Average tenure
- 4.5 years
- Longest tenure
- 4.7 years
- Longest serving
- Chamath De Silva, Jing Jia, Parker Guan, Louis Crous · since 4 FEB 2022
- Most recent appointment
- Anthony Sayers · since 1 MAR 2023
- Managed since
- 4 FEB 2022
- Other funds managed
- 56
Displays all company announcements released by the company to the exchange, sourced from Morningstar.
Announcements
| DATE | TIME | HEADING | PAGES |
| Price sensitive |
Opinion
Australian 10-Year Bond Yield
Local bond markets are likely to open under pressure this morning with oil market chaos likely to deepen as the upheaval, now in its ninth day, shows no sign of imminent resolution. Futures markets are pricing in two rate hikes by the RBA this year with inflation fears increasing almost by the day, a quick resolution to the conflict is required otherwise mortgage holders are likely to be in for a tough time.
Australian 3-year Bond Yield
Ironically, after all the speculation around the RBA rate cut and Michele Bullock's accompanying message, the short-dated 3-year bonds were little changed last week, hovering around 4%.
First Up
The ASX200 enjoyed a strong day at the office on Tuesday, adding to a solid opening throughout the day to finish up over 1%. Gains were encouragingly broad-based, with over 75% of the main board and all 11 sectors closing in positive territory as sellers appeared to take a lead from the looming US Juneteenth National Independence Day holiday. There were a couple of standout moves that should unsettle the numerous bears who are getting plenty of air time in the press.
Interest Rates / Bond Yields
Australian 3-year yields slipped back under 4% last week as cooling US inflation boosted bonds, sending yields lower - core CPI increased 0.2% on the month and 3.4% from a year ago, the slowest pace in more than three years, beating analysts' expectations of 0.3% and 3.5%, respectively. The data was not a huge beat, but for a nervous global bond market, it was extremely welcome. However, the Fed maintained realistic expectations for investors, announcing in the same week they now expect only one rate cut in 2024 and four in 2025. It is the same story: rates are going lower; it's just a matter of when.
Interest Rates / Bond Yields
Australian 3-year bond yields remain above 4% after Friday's strong US Jobs Report, but it's tough to describe the price action as anything more than a holding pattern as investors and traders alike second-guess when the RBA will cut interest rates, rather than if they will cut. It's been a year of speculation around when the RBA will move; it could be another 6-12 months before we get a definitive answer.
Interest Rates / Bond Yields
Australian 3-year bond yields remained above 4% last week in a quiet exit to May, which as a month was also largely unchanged after April's aggressive sell-off off in bonds and subsequent increase in yields. The local 3s illustrate perfectly how financial markets have been “second-guessing” the path for interest rates over the last 12 months, i.e. the 3s are unchanged ~4% after 0.55 forays in both directions.
Interest Rates / Bond Yields
Australian 3-year bond yields edged higher last week as the Fed Minutes weighed on bond prices, pushing yields higher. The magnetic pull of the 4% level continues to control this pivotal market – it’s now almost 12-months since the Australian 3s moved to 4%, and after much jockeying and speculation, they're still here! We continue to believe the next meaningful move will be on the downside, with the when being the “million dollar” question.
Interest Rates / Bond Yields
Australian 3-year bond yields again fell last week as the ducks aligned for the Doves. The US CPI came in lower than expected, following on from signs that the Australian jobs market was softening. The local futures market is now looking for a rate cut by February in 1Q of 2025 with scary hikes back off the table, a welcome relief for mortgage holders.
Interest Rates / Bond Yields
Australian 3-year bond yields again slipped lower last week after the recent “less hawkish” news from the RBA and Fed, but they will need some concrete signs that inflation is again turning lower before a decline back towards their 2024 3.5% low can unfold. The US CPI on Wednesday is likely to dictate terms for most bond markets this week, but we felt there were some signs last week that a degree of weakness is entering the Australian economy.
Action
Updated
20/04/2026
08:34
OZBD
Updated 20/04/2026 08:34
MM in neutral towards the Australian 3s around 4.7%
Updated
26/03/2026
09:02
OZBD
Updated 26/03/2026 09:02
MM is cautiously bullish towards the Australian 3s, i.e. yields lower.
Updated
23/03/2026
08:52
OZBD
Updated 23/03/2026 08:52
MM in neutral towards the Australian 3s around 4.8%
Updated
13/03/2026
09:47
OZBD
Updated 13/03/2026 09:47
MM is neutral towards the 3-year yield ~4.5%
Updated
11/03/2026
09:13
OZBD
Updated 11/03/2026 09:13
MM is neutral towards the 10s around 95.15 (4.85%)
Updated
09/03/2026
09:22
OZBD
Updated 09/03/2026 09:22
MM is mildly bullish towards the US 2s, yields lower
Updated
09/03/2026
09:22
OZBD
Updated 09/03/2026 09:22
MM in neutral towards the Australian 10s around 4.85%
Updated
03/03/2026
17:33
OZBD
Updated 03/03/2026 17:33
MM is neutral Aussie 3-years ~4.3%
Updated
03/03/2026
09:31
OZBD
Updated 03/03/2026 09:31
MM is neutral towards the Australian 10s around 95.35.
Updated
02/03/2026
09:07
OZBD
Updated 02/03/2026 09:07
MM is mildly bullish towards the US 2s, yields lower
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