Is AGVT a good ETF?
AGVT is the BetaShares Australian Government Bond ETF from BetaShares. It tracks the Solactive Australian Government 7-12 Year AUD TR Index. We classify it under Bonds and AU. With about $1.14 billion in assets it is a large, highly liquid fund.
On a total-return basis, AGVT has delivered -1.63% a year over 5 years (ranked 179th of 188 ETFs we track), 3.36% a year over 3 years (ranked 199th of 226 ETFs we track), and 0.31% a year over 1 year (ranked 256th of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.22% is reasonable. That's cheaper than the typical 0.32% for similar ETFs. If cost is your priority, VAF (0.1%), ALTB (0.15%), and VGB (0.16%) cover similar ground for less. It pays a healthy 4% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 5 years its volatility has been moderate (annualised standard deviation around 8.22%), meaning the kind of swings you'd expect from a diversified equity fund.
Portfolio turnover is moderate at about 30% a year — a fair chunk of the portfolio is bought and sold each year, so expect a little more in the way of realised capital gains and trading costs than a plain index fund.
Strengths
- Low-cost: a 0.22% management fee keeps more of the return in your pocket.
- Pays a useful 4% income yield.
Things to watch
- Has lagged most peers over 5 years (179th of 188).
- Cheaper alternatives exist: VAF, ALTB, and VGB.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What AGVT's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.