Exchange Traded Bond units (XTBs) offer a new and exciting fixed income investment opportunity for all investors. They offer access to the performance and benefits of corporate bonds, which are normally not available directly for all investors.
What are XTBs?
How XTBs work
XTBs are securities traded on ASX that bring together the income and capital stability of corporate bonds, with the transparency and liquidity of the ASX market.
Why invest in XTBs?
XTBs give investors the flexibility to access the benefits of the corporate bond market without a minimum investment amount. This contrasts with the wholesale bond market, where institutional investors are typically required to buy bonds in large amounts ($500,000 or more)
XTBs provide investors with an accessible, tradable investment security that aims to track the performance of the actual underlying bonds, after fees and expenses.
What are the benefits of XTBs?
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You get access to an extensive range of corporate bonds from ASX 100 companies. Previously these were only offered to institutional investors
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You can match your income to your cash flow requirements with the help of a regular and reliable income stream
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They provide an alternative, low-risk investment to term deposits
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Corporate bonds offer capital stability. Plus, you have better security of capital repayment than with shares and hybrids
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They are available to self-managed super funds (SMSFs) as part of their investment portfolios
Who are XTBs suitable for?
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You get access to an extensive range of corporate bonds from ASX 100 companies. Previously these were only offered to institutional investors
-
You can match your income to your cash flow requirements with the help of a regular and reliable income stream
-
They provide an alternative, low-risk investment to term deposits
-
Corporate bonds offer capital stability. Plus, you have better security of capital repayment than with shares and hybrids
-
They are available to self-managed super funds (SMSFs) as part of their investment portfolios
Additional information
More information on investing in XTBs
Your guide to corporate bonds
Full list of XTBs available to trade
Build a portfolio of XTBs with the Cash Flow Tool
XTBs Product Disclosure Statement