Top 10 Australian and global fixed interest ETFs of FY25
Australian and global bond markets roared back in FY25. Here are the 10 top-performing Aussie and global fixed interest ETFs.
Fixed interest made a comeback in FY25 as inflation cooled, central banks signalled rate cuts, and investors sought yield after years of rate-driven pain.
Both Australian and global bond markets delivered strong results, with corporate bond, high-yield and emerging market exposures leading the gains.
Below, we break down the 10 top-performing Australian and global fixed interest ETFs.
Top 10 Australian Fixed Interest ETFs
The Bloomberg AusBond Composite 0+ Yr Index returned 6.81%, its best result since FY19 – but several ETFs easily beat the benchmark.
| Rank | Fund Name | Return |
|---|---|---|
| 1 | Betashares Australian Investment Grade Corporate Bond ETF | 9.94% |
| 2 | VanEck Australian Corporate Bond Plus ETF | 8.83% |
| 3 | Betashares Interest Rate Hedged Australian Investment Grade Corporate Bond ETF |
8.38% |
| 4 | Betashares Australian Composite Bond ETF | 7.77% |
| 5 | iShares Core Corporate Bond ETF | 7.70% |
| 6 | Vanguard Australian Corporate Fixed Interest Index ETF | 7.63% |
| 7 | Russell Investments Australian Select Corporate Bond ETF | 7.45% |
| 8 | VanEck 5-10 Year Australian Government Bond ETF | 7.43% |
| 9 | Russell Investments Australian Semi-Government Bond ETF | 7.33% |
| 10 | Betashares Australian Government Bond ETF |
7.22% |
#1 - Betashares Australian Investment Grade Corporate Bond ETF (ASX: CRED)
ETF
Betashares Australian Investment Grade Corporate Bond ETF (CRED)
Australian Fixed Income
View
CRED aims to track the performance of an index that provides intelligent exposure to a portfolio of senior, fixed-rate, investment grade Australian corporate bonds.
The fund's strategy will preference securities offering superior expected excess returns over Australian government bonds. Up to 50 bonds are selected, with eligible bonds requiring amounts outstanding of $250m-plus and a term to maturity of between 5.25 to 10.25 years.
#2 - VanEck Australian Corporate Bond Plus ETF (ASX: PLUS)
ETF
VanEck Australian Corporate Bond Plus ETF (PLUS)
Australian Fixed Income
View
PLUS invests in a diversified portfolio of Australian dollar denominated bonds consisting predominantly of the highest yielding investment grade corporate bonds issued in Australia with the aim of providing investment returns which track the performance of the iBoxx AUD Corporates Yield Plus Mid Price Index.
The index is designed to reflect the performance of the higher-yielding AUD denominated corporate bond market with Credit Ratings from AAA to BB-. Investment grade bonds must make up at least 80% of the index.
#3 - Betashares Interest Rate Hedged Australian Investment Grade Corporate Bond ETF (ASX: HCRD)
ETF
Betashares Interest Rate Hedged Australian Investment Grade Corporate Bond ETF (HCRD)
Australian Fixed Income
View
HCRD aims to track the performance of an index that provides intelligent exposure to a portfolio of senior, fixed-rate, investment grade Australian corporate bonds, hedged to reduce interest rate risk.
CRED’s portfolio includes up to 50 bonds, with eligible bonds requiring amounts outstanding of at least $250 million and a term to maturity of between 5.25 and 10.25 years. Alongside its exposure to bonds, HCRD sells bond futures contracts to substantially reduce interest rate risk, mitigating the potential negative impact of rising interest rates on the performance of the corporate bond portfolio.
Top 10 Global Fixed Interest ETFs
Global bonds had an equally strong year, with emerging market and high-yield strategies leading the pack.
| Rank | Fund Name | Return |
|---|---|---|
| 1 | VanEck Emerging Income Opportunities Active ETF (Managed Fund) | 12.82% |
| 2 | Global X USD High Yield Bond ETF (Currency Hedged) | 9.15% |
| 3 | iShares Global High Yield Bond (AUD Hedged) ETF | 8.70% |
| 4 | iShares J.P. Morgan USD Emerging Markets Bond (AUD Hedged) ETF | 8.60% |
| 5 | Janus Henderson Sustainable Credit Active ETF | 7.95% |
| 6 | VanEck Bentham Global Capital Securities Active ETF (Managed Fund) | 7.80% |
| 7 | VanEck 1-3 Month US Treasury Bond ETF | 6.54% |
| 8 | JPMorgan Income Active ETF (Managed Fund) (Hedged) | 6.29% |
| 9 | iShares Core Global Corporate Bond (AUD Hedged) ETF | 6.29% |
| 10 | Vanguard International Credit Securities Index (Hedged) ETF | 6.01% |
#1 - VanEck Emerging Income Opportunities Active ETF (ASX: EBND)
ETF
VanEck Emerging Income Opportunities Active ETF (Managed Fund) (EBND)
Global Fixed Income
View
EBND provide investors with a globally diversified portfolio of bonds and currencies in emerging markets.
Emerging markets bonds generally pay higher interest than developed markets bonds offering investors an opportunity to broaden their income horizon, with elevated risk. EBND has a target yield of 5% per annum.
#2 - Global X USD High Yield Bond ETF (Currency Hedged) (ASX: USHY)
ETF
Global X USD High Yield Bond ETF (Currency Hedged) (USHY)
Global Fixed Income
View
The Global X USD High Yield Bond ETF (Currency Hedged) (USHY) invests in corporate bonds from around the globe.
Investing in US dollar denominated high-yield corporate bonds, USHY aims to offer high yields with less duration risk, compared to investment grade bonds.
#3 - iShares Global High Yield Bond ETF (ASX: IHHY)
ETF
iShares Global High Yield Bond (AUD Hedged) ETF (IHHY)
Global Fixed Income
View
The iShares Global High Yield Bond ETF is designed to provide simple exposure to high yield corporate bonds across global markets and sectors in a single fund.
How we compiled these lists
Our performance data is sourced from Morningstar, and the funds listed are available on Livewire’s Find Funds menu (located in the top-right corner of the webpage). Note that this is not an exhaustive list of all fixed income ETFs on the market.
Here’s how we filtered the results:
- Fund Type: ETFs
- Asset Class: 'Fixed Income - Australian' and 'Fixed Income - Global'
We then manually refined the list based on 1-year returns.
NOTE: While examining fund performance over a one-year period is an interesting exercise, most funds recommend minimum investment periods of five years or more. As such, it would be worthwhile to consider longer-term performance across cycles when researching funds or making investment decisions. Past performance is not a reliable indicator of future return.
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Vishal has over 15 years' experience in financial journalism and has a particular interest in property, exchange-traded funds (ETFs), investing strategy and financial history.
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6 funds mentioned
Vishal has over 15 years' experience in financial journalism and has a particular interest in property, exchange-traded funds (ETFs), investing strategy and financial history.
Expertise
Vishal has over 15 years' experience in financial journalism and has a particular interest in property, exchange-traded funds (ETFs), investing strategy and financial history.
Expertise
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