Is BNDS a good ETF?
BNDS is the BetaShares Western Asset Australian Bond Active ETF from BetaShares. It tracks the Bloomberg AusBond Composite 0+ Yr Index. We classify it under AU and Bonds. With about $844 million in assets it is a solidly established fund. Listed on the ASX since 2020-05-20 (over 6 years ago).
On a total-return basis, BNDS has delivered 0.05% a year over 5 years (ranked 162nd of 188 ETFs we track), 3.99% a year over 3 years (ranked 193rd of 226 ETFs we track), and 1.13% a year over 1 year (ranked 238th 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 0.42% is on the higher side. For comparison, similar ETFs average around 0.3%. If cost is your priority, IAF (0.1%), VAF (0.1%), and OZBD (0.19%) cover similar ground for less. It pays a healthy 4.32% 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 low (annualised standard deviation around 5.7%), meaning a relatively smooth ride.
Portfolio turnover is very high at about 150% a year — the fund effectively rebuilds its portfolio each year, which realises capital gains aggressively and can create a meaningful tax drag, especially for higher earners holding it outside super.
Strengths
- Pays a useful 4.32% income yield.
- Low volatility (5.7% over 5 years) for a smoother ride.
Things to watch
- Has lagged most peers over 5 years (162nd of 188).
- Pricier than similar ETFs, which average around 0.3%.
- Cheaper alternatives exist: IAF, VAF, and OZBD.
- High portfolio turnover (150% a year) means frequent trading that realises capital gains, adding tax drag — less efficient than a low-turnover index fund.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What BNDS'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.