Is SUBD a good ETF?
SUBD is the VanEck Australian Subordinated Debt ETF from VanEck. We classify it under Bonds and AU. With about $3.73 billion in assets it is a large, highly liquid fund.
On a total-return basis, SUBD has delivered 4.63% a year over 5 years (ranked 123rd of 188 ETFs we track), 6.21% a year over 3 years (ranked 167th of 226 ETFs we track), and 5.68% a year over 1 year (ranked 177th of 308 ETFs we track).
The management fee of 0.29% is reasonable. That's cheaper than the typical 0.32% for similar ETFs. It pays a healthy 5.35% 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 1.32%), meaning a relatively smooth ride. Its 5-year Sharpe ratio of 1.25 is strong — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is modest at about 20% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Strengths
- Low-cost: a 0.29% management fee keeps more of the return in your pocket.
- Pays a useful 5.35% income yield.
- Strong risk-adjusted returns (5-year Sharpe ratio 1.25).
- Low volatility (1.32% over 5 years) for a smoother ride.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What SUBD'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.