VanEck Unveils Detailed PDS for Seven Australian Bond ETFs on ASX AQUA

Overview of VanEck’s Bond ETFs

VanEck Investments Limited has issued an updated Product Disclosure Statement (PDS) dated 1 December 2025, covering seven Australian bond Exchange Traded Funds (ETFs) listed on the Australian Securities Exchange (ASX) under the AQUA Rules. These funds provide investors with diversified exposure to a range of fixed income securities, including Australian government bonds, corporate bonds, floating rate notes, and subordinated debt instruments.

The ETFs include the VanEck 1-5 Year Australian Government Bond ETF (1GOV), 5-10 Year Australian Government Bond ETF (5GOV), Australian Floating Rate ETF (FLOT), Australian Fixed Rate Subordinated Debt ETF (FSUB), Australian Corporate Bond Plus ETF (PLUS), Australian Subordinated Debt ETF (SUBD), and 10+ Year Australian Government Bond ETF (XGOV). Each fund tracks a specific reference index designed to reflect the performance of its targeted bond segment.

Investment Strategies and Market Access

Each fund employs a passive management approach, aiming to replicate the risk profile and returns of its respective reference index by holding a representative sample of bonds. The funds invest primarily in Australian dollar-denominated fixed and floating rate bonds, with some exposure to foreign-issued AUD bonds hedged back to the Australian dollar.

Investors can trade ETF units on the ASX throughout the trading day, benefiting from liquidity supported by appointed Market Makers. However, only Authorised Participants (APs) can create or redeem ETF units directly with VanEck, typically in large blocks known as Creation or Redemption Units. This structure helps maintain alignment between the ETF’s market price and its net asset value (NAV).

Risk Considerations and Fees

The PDS provides extensive disclosures on risks inherent in bond investing, including interest rate risk, credit risk, and specific risks associated with subordinated debt such as subordination in the capital structure, call risk, and loss absorption mechanisms. Investors are cautioned that subordinated bonds carry higher risk and may experience significant losses in adverse scenarios.

Management fees vary across the funds, ranging from 0.22% to 0.32% per annum, with no performance fees charged. Transaction costs are estimated at zero percent annually, and dividends are expected to be paid monthly, with an optional Dividend Reinvestment Plan available.

Regulatory and Operational Framework

VanEck acts as the Responsible Entity for the funds, overseeing management, compliance, and administration. The funds are registered managed investment schemes regulated by ASIC and operate under the ASX AQUA Rules, which provide a tailored framework for ETFs. The PDS outlines governance arrangements, including the roles of the custodian, fund administrator, registrar, and market maker, as well as procedures for creations, redemptions, and disclosures.

Tax implications for Australian and foreign investors are summarized, emphasizing the importance of consulting professional advisers. The PDS also highlights VanEck’s commitment to transparency, with daily portfolio holdings and NAV information published online.

Implications for Investors

This updated PDS offers investors a detailed and transparent guide to VanEck’s Australian bond ETFs, facilitating informed decisions about fixed income exposure through liquid, cost-effective exchange traded products. The range of maturities and bond types caters to diverse risk-return preferences, while the structured operational framework supports market integrity and investor protection.