BetaShares QPON ETF (ASX:QPON)

BetaShares Australian Bank Senior Floating Rate Note ETF

About the QPON ETF

QPON ETF tracks the performance of Solactive Australian Bank Senior Rate Bond Index (before fees and expenses). The index measures the performance of a portfolio of some of the largest and most liquid senior floating rate bonds issued by Australian banks.

The BetaShares-managed QPON ETF provides an opportunity to earn monthly income distributions with high levels of capital stability from a large portfolio of senior floating rate bonds. Australian bank senior floating rate bonds historically have had a high level of capital stability, and limited capital variability when equity markets decline.

At the end of 31 December 2023 the QPON ETF held 13 different investments and had total of $1.2 billion in net assets.

QPON ETF Performance Review

5.44

2.45

2.48

5.37

4.66

Data Current To: 29/12/2023

Our review of QPON ETF

A portfolio of senior, investment grade corporate bonds with an average credit rating of AA-

Eligible bonds must have at least $500 million outstanding and term to maturity of between 1 to 5 years

The ETF consists of 100% floating rate bonds, there is a very small exposure to interest rate risk

What we like about the QPON ETF

Bonds chosen by expected returns rather than debt outstanding

Takes minimal interest rate risk

Income paid monthly

Things to be aware of about the QPON ETF

Concentrated, with up to 80% bonds issued by the big four Australian banks and 20% to other Australian banks

QPON ETF Investment Strategy

Eligible bonds must have amounts outstanding of at least $500 million and a term to maturity of between 1 to 5 years, with up to 80% of the portfolio allocated to bonds issued by the 'Big 4' Australian banks (equal weighted) and up to 20% of the portfolio allocated to other Australian banks.

What does the QPON ETF Invest In?

QPON is a Corporate Bond ETF.

To qualify for investment by BetaShares QPON ETF, bonds must have of at least $500 million outstanding and a term to maturity of between 1 to 5 years. Up to 80% of the portfolio is allocated to bonds issued by the big four Australian banks (equal weighted) and up to 20% of the portfolio allocated to other Australian banks.

QPON ETF Credit Quality

The average credit quality of the QPON ETF is AA-.

A detailed breakdown of the credit quality is expressed below.

QPON Frequently Asked Questions

What index does the QPON ETF aim to replicate?

The QPON ETF aims to replicate the Solactive Australian Bank Senior Floating Rate Bond ETF.

How often does QPON ETF pay distributions?

The distribution frequency of QPON is Monthly.

When did the QPON ETF start?

The inception date of the QPON ETF was 01/06/2017.

What are the net assets of the QPON ETF?

QPON has net assets of $1215.3m (AUD) as of 29/12/2023.

What are the number of holdings in the QPON ETF?

Total number of holdings in QPON is 13 as of 29/12/2023.

What are the management fees for the QPON ETF?

The annual management fees for the QPON ETF are 0.22% p.a. Learn more about ETF fees in this article.

How can I invest in the QPON ETF?

QPON is an Exchange Traded Fund, and units may be bought or sold on the ASX like shares. Learn how to buy and sell ETFs in this article.

Does the QPON ETF have a minimum investment amount?

No, there is no minimum to invest in the Betashares QPON ETF. Exchange Traded Funds in general do not have a minimum investment amount required by the issuer. However, if you choose to invest through a broker, they may choose to set their own minimum investment amount.

Are there any performance fees associated with the QPON ETF?

No, QPON has no performance fee. This is one of the advantages of Exchange Traded Funds, as they are traded like shares, you’ll generally only pay a commission to buy or sell units and an ongoing management fee.