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CRED

$22.53-0.71%Bonds & Fixed Income67/100
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BetaShares Aust Investment Grade Corp Bond ETF · BetaShares

Data as at 29 March 2026

TL;DR

Tracks investment-grade Australian corporate bonds — debt issued by ANZ, CBA, Telstra, and similar large companies. Offers higher yield than government bond ETFs with moderate additional credit risk.

MER (Annual Fee)
0.25%
#5 lowest in Bonds & Fixed Income
1Y Return
+2.2%
3Y Return (p.a.)
+4.8%
Dividend Yield
4.98%
Trailing 12 months
AUM
$1,773.8M
Assets under management
Avg Daily Turnover
$2.2M
Avg shares × unit price
Unit Price
$22.53
As at 29 March 2026
Provider
BetaShares
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Strategy

Focuses exclusively on investment-grade corporate bonds issued by Australian companies, excluding government bonds entirely. Provides higher yield than VAF or IAF at the cost of slightly more credit risk.

Top Holdings

Key Fact

Investment-grade corporate bonds typically yield 0.5-1.5% more per year than equivalent-maturity government bonds. CRED captures this credit premium while staying within the investment-grade universe and avoiding the highest-risk issuers.

Suited for

Income-focused investors who want higher yield than government bonds but are not willing to take equity-level risk. Corporate bonds are senior to equity in the capital structure, so bondholders are repaid before shareholders in a default.

Risks

Corporate bonds can fall in value during credit crunches when default risk rises. Rising interest rates also reduce the fund's value. Investment-grade status is not a guarantee of no default.

ETFCheck Score67/100
Fees (40%)63
Fund Size (25%)57
Liquidity (20%)64
Yield (15%)100
How scores are calculated →
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0.20% MER
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0.22% MER
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0.15% MER
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0.20% MER
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Frequently Asked Questions - CRED

What credit quality does CRED hold compared to government bond ETFs like IAF?+
CRED invests exclusively in investment-grade Australian corporate bonds rated BBB- or above by major agencies, whereas IAF blends government and corporate issuers. This corporate focus explains CRED's higher 4.12% yield versus IAF's 3.35% - the spread compensates for marginally higher default risk. During economic downturns, CRED's price may be more volatile than pure government bond funds, but historical default rates on Australian investment-grade corporates remain extremely low.
How does CRED generate a higher yield than government bond ETFs without taking excessive risk?+
CRED captures the credit spread premium that corporate borrowers pay above the government bond rate. With a 1-year return of 5.8% and a yield of 4.12%, it has rewarded investors for accepting corporate credit risk that historically has resulted in very few defaults among investment-grade Australian issuers. The 0.25% MER is reasonable for a managed corporate bond portfolio and significantly cheaper than active fixed income funds available to Australian investors.
Who should consider CRED in their Australian portfolio?+
CRED suits investors seeking higher income than government bonds while staying within investment-grade credit quality - ideal for retirees or SMSF trustees wanting yield above IAF or VAF without stepping into hybrids or high-yield debt. Its 5.8% one-year return demonstrates solid performance in the current rate environment. It pairs well with a floating-rate ETF like QPON to balance duration and credit exposure across a diversified fixed income portfolio.
Does CRED carry interest rate risk similar to government bond ETFs?+
Yes, CRED holds fixed-rate corporate bonds with meaningful duration, so its price declines when yields rise - similar to IAF but with added credit spread volatility. During 2022's rate rises, CRED experienced capital losses partially offset by its higher coupon income. Investors wanting corporate credit exposure without duration risk might consider floating-rate alternatives like QPON, which invests in bank senior bonds that reset coupons quarterly with RBA rate movements.