Is XARO a good ETF?
XARO is the Ardea Real Outcome Bond Complex ETF. It tracks the Bloomberg AusBond Bank Bill Index. We classify it under AU and Bonds. Listed on the ASX since 2018-11-01 (almost 8 years ago).
The management fee of 0.5% is on the higher side. For comparison, similar ETFs average around 0.3%. If cost is your priority, IAF (0.1%), ILB (0.18%), and OZBD (0.19%) cover similar ground for less.
Portfolio turnover is very high at about 250% a year — the fund effectively rebuilds its portfolio each year, which realises capital gains aggressively and can create a meaningful tax drag, especially for higher earners holding it outside super.
Things to watch
- Pricier than similar ETFs, which average around 0.3%.
- Cheaper alternatives exist: IAF, ILB, and OZBD.
- High portfolio turnover (250% a year) means frequent trading that realises capital gains, adding tax drag — less efficient than a low-turnover index fund.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What XARO'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.