SUBD

 SUBD

22-7-26

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https://www.marketindex.com.au/asx/subd

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ASX:SUBD (VanEck Australian Subordinated Debt ETF) is an income-focused fund, meaning metrics like corporate "profit," "debt," and "ROE" do not directly apply to the ETF itself. Over the last 5 years, SUBD has generated a modest capital return of roughly \(-0.71\%\) to \(3.78\%\), but delivered an average annual total return of \(6.12\%\) when including its consistent monthly distributions. [1, 2, 3, 4, 5]

Because SUBD is an exchange-traded fund that invests in a portfolio of subordinated bonds (primarily Tier 2 capital issued by major Australian banks), analyzing its performance differs from evaluating a standard company. [1, 2, 3, 4, 5]

Core 5-Year Performance (As of Mid-2026)

Total Return (5-Year): ~\(\sim 6.12\%\) per annum. A \(\$1,000\) investment made 5 years ago would be worth about \(\$1,244\) today with dividends reinvested.
Capital Growth (5-Year): Flat to slightly negative, as subordinated debt focuses on income rather than share price appreciation.
Dividend Yield: \(\sim 5.3\%\) to \(5.7\%\), paid out monthly.
Management Fee: \(0.29\%\) p.a. [1, 2, 3, 4, 5, 6]


Instead of corporate profits, SUBD tracks the performance of the iBoxx AUD Investment Grade Subordinated Debt Mid Price Index. [1]
Underlying Debt: The ETF invests in subordinated bonds, which are lower-tier debt instruments. They carry higher risk than senior debt but rank above equity in the event of default. [1, 2, 3, 4]
Issuers: The portfolio is overwhelmingly weighted toward Australia's major banks (e.g., Westpac, ANZ), which maintain solid "A-" average credit ratings. [1, 2, 3, 4]
ROE & Profitability: While the ETF itself does not report ROE or profit, the profitability of the underlying banking institutions heavily dictates the stability of the coupon payments and the ETF's low overall volatility

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