BetaShares QPON ETF (ASX:QPON)
The BetaShares QPON ETF provides investors with exposure to a portfolio of some of the largest and most liquid senior floating rate bonds issued by Australian banks.
What does the QPON invest in?
QPON invests in a portfolio of bonds that comprise the Solactive Australian Bank Senior Floating Rate Bond Index. In order to eligible for inclusion in the Index, each bond must be issued by an eligible Australian bank (think the major banks in Australia) and have a term to maturity of between one to five years.
What do investors use QPON for?
Investors could use the QPON ETF to diversify an existing portfolio and gain exposure to Australian floating rate bank bonds, or to create a regular income stream from the monthly distributions offered by this ETF. A floating rate bond is a debt security that pays a regular coupon (interest) that varies over time – this differs from a fixed rate bond which pays the same rate of interest over the life of the bond.
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