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QPON

$26.24+0.04%Bonds & Fixed Income67/100
Fund Page ↗

BetaShares Aust Bank Senior Floating Rate Bond ETF · BetaShares

Data as at 29 March 2026

TL;DR

Holds floating rate bonds — debt where the interest payment adjusts with the RBA cash rate rather than being fixed. When the RBA raises rates, QPON's income distributions rise with them.

MER (Annual Fee)
0.22%
#4 lowest in Bonds & Fixed Income
1Y Return
+5.1%
3Y Return (p.a.)
+5.4%
Dividend Yield
4.30%
Trailing 12 months
AUM
$1,911.9M
Assets under management
Avg Daily Turnover
$2.3M
Avg shares × unit price
Unit Price
$26.24
As at 29 March 2026
Provider
BetaShares
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Strategy

Tracks floating rate bonds issued by Australian banks and corporations. The floating rate structure means the fund's unit price is much more stable than a fixed-rate bond fund during rate cycles.

Top Holdings

Key Fact

QPON's unit price barely moved during the 2022 interest rate hiking cycle. While VAF fell approximately 10% as rates rose sharply, QPON's floating rate structure meant its price stayed near par while its income distributions increased.

Suited for

Investors who want corporate bond income without the interest rate duration risk of standard bond funds. Particularly useful when rates are expected to rise, as income increases while capital value remains stable.

Risks

When interest rates fall, QPON's income falls with the RBA cash rate. There is less potential for capital appreciation than fixed-rate bonds when rates decline sharply.

ETFCheck Score67/100
Fees (40%)67
Fund Size (25%)59
Liquidity (20%)63
Yield (15%)86
How scores are calculated →
Other Bonds & Fixed Income ETFs
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0.20% MER
67
CRED
0.25% MER
67
IAF
0.15% MER
66
VGB
0.20% MER
61
HBRD
0.45% MER
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Frequently Asked Questions - QPON

Why does QPON's income increase when the RBA raises interest rates?+
QPON holds floating-rate senior bonds issued by major Australian banks, where coupon payments are linked to the bank bill swap rate (BBSW) plus a credit margin. Each RBA rate hike pushes BBSW higher, directly increasing QPON's income - its current yield sits at an attractive 5.28%. This makes QPON a natural hedge against rising rates, unlike fixed-rate bond ETFs such as IAF or CRED which suffer capital losses when rates increase.
What happens to QPON if the RBA starts cutting rates?+
If the RBA cuts rates, QPON's income will decrease as floating-rate coupons reset lower with falling BBSW. However, QPON would likely see modest capital appreciation as credit spreads typically tighten in easing cycles, partially offsetting the income decline. Investors anticipating rate cuts might consider locking in yields through fixed-rate bond ETFs like IAF or CRED while maintaining a smaller QPON allocation for portfolio diversification and ongoing income.
How safe are the underlying bonds in QPON compared to hybrids like HBRD?+
QPON invests in senior-ranking bank bonds, which sit significantly higher in the capital structure than hybrid securities held by HBRD. In a bank stress scenario, QPON's senior bonds would be repaid before hybrids, which can be converted to equity or written off entirely. This seniority explains QPON's lower 5.28% yield compared to HBRD's 5.85%, but provides considerably more capital protection - a critical distinction for conservative SMSF investors prioritising capital preservation.
Is QPON a good alternative to term deposits for Australian investors?+
QPON offers a compelling 5.28% yield with daily ASX liquidity, unlike term deposits which lock funds for fixed periods with break penalties. The trade-off is that QPON's unit price can fluctuate slightly with changes in bank credit spreads, whereas term deposits guarantee principal. For SMSF trustees needing both competitive income and portfolio flexibility, QPON serves as a liquid complement to term deposits within the defensive allocation of their investment strategy.