VanEck Australian Floating Rate ETF (FLOT)
Licence to Yield |
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/100945-2022-03-09-17:46.pdf |
FUND MANAGER | VanEck Investments |
ASX Code | FLOT* |
APIR | |
ASSET CLASS | EXCHANGE TRADED FUNDS |
INVESTMENT STYLE | FLOT provides investors with easy access to a portfolio of Australian dollar denominated Floating Rate Bonds. |
INVESTMENT PROFILE | FLOT aims to provide investment returns (before fees and other costs) which track the performance of the Benchmark. |
CURRENCY MANAGEMENT | Unhedged |
INCEPTION DATE | 05-07-2017 |
BENCHMARK | Bloomberg AusBond Credit FRN 0+ Yr Index |
FUND SIZE | Bloomberg AusBond Credit FRN 0+ Yr Index |
DISTRIBUTION FREQUENCY | Monthly |
NO. OF HOLDINGS | 200+ |
FEES | 0.22% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of investing in the VanEck Vectors Australian Floating Rate ETFReference Index strategy Each Fund provides investors access to the performance of its Reference Index. Exchange Traded Funds Each Fund is an index-tracking ETF. ETFs provide investors with the best attributes of both managed funds and listed shares. When you invest in a Fund, you gain access to a portfolio of investments, constructed using professional skills and knowledge that you may not have access to if you invest on your own. ETFs can be easily traded on ASX like listed shares, with live pricing throughout the ASX Trading Day. The difference between a single trade in ETF Units and company shares is that when you buy ETF Units you acquire exposure to the performance of an entire portfolio of securities not just a single company, saving you money and time. ETFs also provide potential advantages to investors including low costs and full daily transparency of the underlying portfolio holdings. Lower costs Since ETFs track an index, they are typically able to achieve lower operating costs. As a result they charge management fees which are generally lower than those of equivalent unlisted actively managed funds. Easy access via ASX to a portfolio of fixed income assets Each Fund provides investors with easy access to a portfolio of fixed income assets via a single trade on ASX. Flexibility of trading on exchange As the ETF Units are quoted on ASX, you have the flexibility to trade ETF Units in a Fund throughout the day, like trading shares. You can even buy and sell on the same day (intraday trading). Transparency ETFs provide investors with transparency in respect of portfolio holdings. The portfolio of securities in each Fund is published daily at www.vaneck.com.au. Pricing throughout the day on ASX Trading prices of the ETF Units are continuously quoted on ASX and via Brokers throughout each ASX Trading Day. |
RISK LEVEL | |
INVESTOR SUITABILITY |
Risks
Title | |
Detail |
Key Features
About the FundFLOT invests in a diversified portfolio of Australian dollar denominated Floating Rate Bonds with the aim of providing investment returns (before fees and costs) that closely track the returns of the Index. Index descriptionThe Bloomberg AusBond Credit FRN 0+ Yr Index (BAFRN0) is a market value weighted index comprising floating rate bonds that are of investment grade quality. The index typically includes bonds issued by corporate entities such as the four largest banks in Australia, foreign banks, other lending institutions and Australian listed property trusts (A-REITs). Key Points
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Mandate
How we invest your moneyThe VanEck Vectors Australian Floating Rate ETF (FLOT) invests in a diversified portfolio of Australian dollar denominated floating rate bonds with the aim of providing investment returns (before management costs) that closely track the returns of the Bloomberg AusBond Credit FRN 0+ Yr Index (BAFRN0). BAFRN0 is a market value weighted index comprising floating rate bonds that are of investment grade quality. The index typically includes bonds issued by corporate entities such as the four largest banks in Australia, foreign banks, other lending institutions and Australian listed property trusts. To be included in the index a floating rate bond issue must have a published investment grade credit rating from at least one of S&P, Moody's or Fitch, a minimum outstanding face value of $100 million and a minimum of one month to maturity. The bonds must also be issued in the Australian debt market under Australian law. |