Global X’s Bank Credit ETF earns ‘Recommended’ rating from Lonsec
The recently-launched Global X Australian Bank Credit ETF (ASX: BANK) has received a ‘Recommended’ rating from premier investment research and ratings firm, Lonsec.
The ‘Recommended’ rating reflects strong conviction in BANK’s structure and returns, making it an apt choice for investors seeking diversified exposure to Australian bank credit, high yields, and steady income amid rising interest rates. According to Lonsec’s report, the firm expressed confidence in the fund’s ability to generate risk-adjusted returns and deemed it an appropriate entry point to this asset class.
BANK provides investors with an efficient means to access a blend of Australian Bank Senior, Hybrid, and Subordinated investment-grade bonds. Tracking the performance of the Solactive Australian Bank Credit Index, it is currently the only passively managed ETF listed in Australia that offers this strategy. The fund invests in assets offering a higher yield relative to cash, term deposits, and traditional bonds for an elevated degree of risk, and aims to provide monthly distributions to deliver regular income to investors.
Manny Damianakis, Head of Sales at Global X, said the ‘Recommended’ rating supports the firm’s conviction in the strategy and anticipates it will attract new investors seeking to generate attractive yields from Australian banks.
“Recently, fixed income ETFs have captured significant net flows in the Australian market, with a majority portion of that directed towards Australian fixed income ETFs. This trend underscores how rising interest rates have influenced local investor sentiment, prompting an investor shift towards reducing portfolio duration while seeking attractive yields,” Damianakis said.
“BANK offers exposure to the broader capital stack of Australia’s banks in one diversified solution, providing investors with a well-managed, high-performing fund that stands out in the market.
“We are pleased to receive Lonsec’s recommended rating for this product, which reflects our commitment to delivering high-quality and relevant investment solutions that meet investors’ needs amid evolving market conditions.”
BANK is the latest addition to the Global X’s suite of 40 listed ETFs across thematics, commodities, income, digital assets, and more. The company now manages more than $7.5 billion in assets under management in Australia.
