Australian Bond ETFs offer a few key advantages over buying individual bonds: Diversification – Bond ETFs hold a basket of bonds which improves overall portfolio diversification and reduces the chance of you lending a large amount to a dud company., Here’s the list of the best bond ETFs in three main groups: core bond funds, short-term bond funds, and specialized bond funds. These ETFs all land in one of the, We have selected five bond ETFs that we believe are good investments. In selecting the list, we have focused on key criteria such as diversification levels, MER (Management Expense Ratio), the quality of the investment manager, fund size, liquidity, tracking error, and performance., These passive ETFs earn our highest ratings and provide access to major asset classes that make up a diversified portfolio. Mentioned: iShares Core Composite Bond ETF (IAF), iShares S&P 500 ETF (IVV), SPDR® S&P/ASX 200 ETF (STW), Vanguard MSCI Intl (Hdg) ETF (VGAD), Vanguard MSCI Intl ETF (VGS), 2025 has plenty of bond options for income and stability. From floating rate ETFs to Australian government bonds, they give you returns in uncertain times. Low risk investments like Australian government bonds and NBN Co Bonds are for the conservative investor looking for regular income., Bond ETFs are opening up a new diversification asset, as high-grade bonds tend to rise in value when share prices fall. There are many factors to consider when choosing a Bond ETF — including the level of diversification, Management Expense Ratio, slippage, long-term performance, liquidity and yield..