Fixed Interest – Australia

The Best ETFs Australian Fixed Interest sector includes ETFs, managed funds and index funds which cover Australian bonds ranging from Government treasuries to Corporate and Hybrids; right through to Cash Management Trusts (CMTs).

This sector may also include cash or bond products from foreign Governments or companies issuing their debt (bonds) or cash products here in Australia.

Performance Characteristics

Over the ultra-long-term, we expect the Australian bonds and cash sector to perform with low amounts of volatility (ups and downs) but equally low capital gains. Moreover, we believe investors should expect the income return produced by high-grade bonds and cash to remain low for the foreseeable future as inflation and Australian interest rates remain well below historical levels.

Don’t Forget…

One of the unique features of the Australian term deposit market — it’s a legacy of our time during the Global Financial Crisis (GFC) of 2008/2009 —  is the Australian Government Guarantee on deposits.

Before buying a cash ETF, we think you should learn more about this relatively unique protection mechanism for Australians who deposit up to $250,000 in an approved bank. It may offer more security than buying a cash ETF. You can learn more about the Australian Government’s deposit guarantee by clicking here.

We think you should consult a licensed, independent and trustworthy financial adviser if you need help understanding the guarantee.

General Financial Advice warning
The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

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