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Global Fixed Interest ETFs are relatively new to the growing list of ETFs listed on the Australian Stock Exchange. It was only in late 2015 that Australian investors were first able to add these instruments to their passive investment toolbox.
Vanguard and iShares both have offerings in this space. Investors can choose from governement or corporate debt and can choose investment or sub-investment grade, or even emerging market sovereign debt.
As with any fixed interest securities, it is important to understand that while the interest might be fixed, the capital value is not. Any movement in interest rates around the world can impact the price at which bonds trade. It is importand to understand this relationship fully before considering any of these ETFs.
Below is the full list of ASX-listed Global Fixed Interest ETFs.
|ASX Code||Name||Benchmark||Management Fee|
|IHHY||iShares Global High Yield Bond (AUD Hedged) ETF||Markit iBoxx Global Developed markets Liquid High Yield Capped Index (AUD Hedged)||0.56%|
|IHCB||iShares Global Corporate Bond (AUD Hedged) ETF||Barclays Global Aggregate Corporate Bond Index (AUD Hedged)||0.26%|
|IHEB||iShares J.P. Morgan USD Emerging Markets Bond (AUD Hedged) ETF||J.P. Morgan EMBI Global Core Index (AUD Hedged)||0.51%|
|VCF||Vanguard International Credit Securities Index (Hedged) ETF||Barclays Global Aggregate Government related and Corporate Index hedged into Australian dollars||0.3%|
|VIF||Vanguard International Fixed Interest Index (Hedged) ETF||Barclays Global Treasury Index hedged into Australian dollars||0.2%|