Grow it · ETFs

FRAR vs IAF

Compare fees, returns, income and risk for these 2 ASX-listed ETFs side by side.

At a glance

Comparing FRAR and IAF. IAF has the lower management fee at 0.1% a year and IAF offers the higher at 3.18%.
Lower fee
IAF 0.1% p.a.
Higher yield
IAF 3.18%
Larger fund
IAF $3.7bn

Side-by-side comparison

Metric FRAR
Franklin Australian Absolute Return Bond Fund - Active ETF
IAF
iShares Core Composite Bond ETF
Snapshot
Provider
—
iShares
Tracks index
—
Bloomberg AusBond Composite 0+ Yr Index
Categories
Bonds, AU, Active
AU, Bonds
Listed since
—
2012 (14 yrs)
Fund size (AUM)
$706m
$3.7bn
Cost & income
Management fee
0.5%
0.1%
Dividend yield
—
3.18%
Franking
0%
0%
Turnover
30%
35%
Tax drag 0.72% 1.86%
Returns
Tax bracket
1-year return
—
-0.5%
net
3-year return
—
3.5%
net
5-year return
—
-0.1%
net
10-year return
—
1.4%
net
Risk
Volatility (3y)
—
3.9%
Volatility (5y)
—
5.4%
Volatility (10y)
—
4.5%
Sharpe ratio (3y)
—
—
Sharpe ratio (5y)
—
—
Sharpe ratio (10y)
—
—
Bid/ask spread
—
—

marks the strongest fund in each row. “net” shows the after-tax return at your selected bracket. “—” means we don’t have that data point yet.

Each fund at a glance

FRAR Franklin Australian Absolute Return Bond Fund - Active ETF
  • Pricier than similar ETFs, which average around 0.45%.
IAF iShares Core Composite Bond ETF
  • Low-cost: a 0.1% management fee keeps more of the return in your pocket.
  • Low volatility (4.46% over 10 years) for a smoother ride.
  • Has lagged most peers over 10 years (97th of 110).

Frequently Asked Questions

What's the difference between FRAR vs IAF?

FRAR and IAF are 2 Australian-listed ETFs we compare side by side. IAF carries the lower management fee (0.1%). The table above breaks down fees, returns, income and risk for each.

Which has the lower fees - FRAR vs IAF?

IAF has the lower management fee at 0.1% a year, versus FRAR 0.5%.

Which pays the higher dividend yield?

IAF pays the higher at 3.18%. Remember distributions are taxed each year at your marginal rate.

Which is the larger and most liquid?

IAF is the larger fund by assets ($3.7bn). Larger funds are typically more liquid and trade on tighter spreads.

Related comparisons

General information only, generated from each 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.

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