XTBs are the smart, affordable way to add the benefits of corporate bonds to your portfolio.
Corporate bonds can provide diversification in a portfolio and offer regular and predictable cash flows. They are a defensive asset class, particularly important in these times of greater market uncertainty.
But, traditionally they have been limited to those with large sums to invest. Or they had to be accessed via pooled investments such as bond ETFs and managed funds – removing some of the predictability which fixed income should offer.
That’s all changed. Now you can access corporate bond XTBs on ASX. With investments starting from only a few hundred dollars, it’s now easier to incorporate the benefits of corporate bonds into your portfolio.
How XTBs work
XTBs represent a fraction of a corporate bond, which is traded on ASX.
Each XTB has the same coupon rate and maturity date as its underlying bond. So effectively they mirror the cash flow characteristics of individual corporate bonds issued in the wholesale market.
XTBs blend the predictable income and capital stability of corporate bonds, with the transparency and liquidity of the ASX market.
With XTBs you stay in control – you choose:
- Which underlying bonds to select
- How much you want to invest in each XTB
- Which broker to buy or sell with.
It’s just like you’ve always been able to do with shares.
Want to know more?
There are more than 50 XTBs on ASX across fixed and floating-rate bonds. XTBs cover a range of ASX100 companies, keeping your investment with names you know and trust. Buy one, or pick a few and blend the attributes of specific individual bonds into your portfolio.
- Mirrors the coupon rate and maturity dates of its underlying bond – giving you a predictable cash flow
- Reflects the yield and price of its underlying bond, after fees and expenses
- Includes XTB fees within the ASX price – giving you transparent after-fee returns
- Matures at $100 (its face value) providing a predictable outcome BEFORE you invest.
There is no set minimum number of XTBs you can buy, so you can start as small as you like. You can buy, or sell with any broker you wish, so there’s no new accounts to set up or application forms to complete.
Bridging the gap between bond issuers and direct investors
Overview of XTBs:
- Trading on ASX since May 2015
- More than 64 individual XTBs since launch
- Access to the benefits of bonds from top ASX companies
- Over $500m traded on ASX
- $32m Face Value returned from 13 maturing XTBs
- Income of more than $29m paid to XTB investors
- All XTBs have performed in line with their objective.