Is BSUB a good ETF?
BSUB is the BetaShares Australian Major Bank Subordinated Debt ETF from BetaShares. It tracks the Solactive Australian Major Bank Subordinated Debt Select Index. We classify it under AU. With about $772 million in assets it is a solidly established fund. Listed on the ASX since 2022-10-19 (almost 4 years ago).
On a total-return basis, BSUB has delivered 5.59% a year over 1 year (ranked 178th of 308 ETFs we track).
The management fee of 0.29% is reasonable. That's cheaper than the typical 0.32% for similar ETFs. If cost is your priority, OZBD (0.19%) and VACF (0.2%) cover similar ground for less. It pays a healthy 4.69% 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.
Portfolio turnover is low at about 15% a year — it trades only a small slice of its holdings each year, so trading costs and tax on realised gains stay modest — typical of a passive index strategy.
Strengths
- Low-cost: a 0.29% management fee keeps more of the return in your pocket.
- Pays a useful 4.69% income yield.
Things to watch
- Cheaper alternatives exist: OZBD and VACF.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What BSUB'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.