Is FSUB a good ETF?
FSUB is the VanEck Australian Fixed Rate Subordinated Debt ETF from VanEck. We classify it under Bonds and AU. With about $76 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
The management fee of 0.29% is reasonable. That's cheaper than the typical 0.32% for similar ETFs.
Portfolio turnover is very low at about 0% a year — the portfolio barely changes from year to year, much like a classic buy-and-hold index fund. Very little of its return is lost to trading or to capital gains being realised early, making it highly tax-efficient.
Strengths
- Low-cost: a 0.29% management fee keeps more of the return in your pocket.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What FSUB'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.