VanEck’s Fixed Income ETFs Feature Fees from 0.22% to 0.32% and Monthly Dividends

VanEck's Updated Product Disclosure Statement

VanEck Investments Limited has issued a comprehensive Product Disclosure Statement (PDS) dated 1 December 2025 for its suite of Australian fixed income Exchange Traded Funds (ETFs). The document replaces previous disclosures for most funds and provides detailed information on seven ETFs listed on the Australian Securities Exchange (ASX) under the AQUA Rules.

Diverse Fixed Income Exposure

The funds offer investors access to diversified portfolios of Australian Government Bonds, corporate bonds, floating rate notes, and subordinated debt with varying maturities and credit qualities. Each fund tracks a specific reference index from S&P Dow Jones Indices or Bloomberg, employing a passive management strategy that aims to replicate the index performance before fees and costs.

For example, the 1GOV, 5GOV, and XGOV ETFs focus on government bonds with maturities ranging from 1 to over 10 years, while the PLUS ETF targets higher-yielding corporate fixed rate bonds. The FLOT ETF invests in floating rate notes, primarily issued by major Australian banks, and the FSUB and SUBD ETFs provide exposure to fixed and floating rate subordinated debt, respectively, which carry higher risk and potential return profiles.

Liquidity and Trading Features

All ETFs are traded on the ASX with liquidity facilitated by an appointed Market Maker, ensuring that investors can buy and sell units throughout the trading day with pricing closely aligned to the net asset value (NAV). Monthly dividends are expected to be paid, with an option for investors to participate in a Dividend Reinvestment Plan (DRP) to automatically reinvest income distributions.

Fee Structure and Costs

Management fees vary across the funds, ranging from 0.22% to 0.32% per annum, with no indirect costs currently estimated. Authorised Participants, entities that create or redeem ETF units directly with VanEck, incur contribution and withdrawal fees typically around $200 to $300 per transaction, which may be negotiated. Importantly, no performance fees apply, and transaction costs are estimated at zero percent annually.

Risk Considerations

The PDS provides extensive risk disclosures, highlighting the inherent risks associated with bond investments, including interest rate fluctuations, credit risk, and market volatility. Subordinated debt ETFs carry additional risks such as subordination in the capital structure, call risk, and potential loss absorption mechanisms that could impact returns in stressed financial conditions. Investors are advised to consult financial advisers to understand these risks in the context of their individual investment objectives and risk tolerance.

Operational and Regulatory Framework

VanEck acts as the Responsible Entity for the funds, overseeing management, compliance, and administration. The funds operate under the AQUA Rules, a tailored ASX framework for managed funds and ETFs, which differs from traditional ASX listing rules by focusing on underlying asset liquidity and transparent pricing. The PDS also details tax considerations for Australian and foreign investors, continuous disclosure obligations, and investor rights under the fund constitutions.