Is HCRD a good ETF?
HCRD is the BetaShares Interest Rate Hedged Australian Grade Corporate Bond ETF from BetaShares. We classify it under Bonds and AU. With about $344 million in assets it is a solidly established fund.
On a total-return basis, HCRD has delivered 7.75% a year over 3 years (ranked 146th of 226 ETFs we track) and 4.86% a year over 1 year (ranked 186th 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, ICOR (0.15%), VACF (0.2%), and CRED (0.25%) cover similar ground for less. It pays a healthy 4.88% 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 3 years its volatility has been low (annualised standard deviation around 1.54%), meaning a relatively smooth ride. Its 3-year Sharpe ratio of 2.25 is excellent — that's the return it has earned per unit of risk taken (higher is better).
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 0.29% management fee keeps more of the return in your pocket.
- Pays a useful 4.88% income yield.
- Strong risk-adjusted returns (3-year Sharpe ratio 2.25).
- Low volatility (1.54% over 3 years) for a smoother ride.
Things to watch
- Cheaper alternatives exist: ICOR, VACF, and CRED.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What HCRD'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.