iShares Core Composite Bond ETF (IAF)
Asset Class: Fixed Interest
Description: Australian Fixed Interest, Passive
- The iShares Core Composite Bond ETF invests in in high-quality, income-generating securities issued by the Commonwealth Government of Australia, Australian State Government authorities and treasury corporations, as well as investment-grade corporate issuers.
- The iShares Core Composite Bond ETF invests predominantly in securities with high credit ratings. Around 90% of the exposure is to Australian government and state government debt, with the remaining 10% in credit securities.
- The iShares Core Composite Bond ETF is expected to provide some diversification relative to equities.
- Given the higher duration profile of the iShares Core Composite Bond ETF it is expected to performed well in environments where interest rates are falling and is unlikely to perform well in environments where interest rates are rising.