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. Bonds are a defensive asset class, particularly important in these times of greater market uncertainty.
Traditionally bonds have been limited to those with large sums to invest, or had to be accessed via pooled investments such as bond ETFs and managed funds which removes some of the predictability which fixed income should offer. But, with corporate bond XTBs on ASX that’s all changed.
Investments start from only a few hundred dollars and you can choose which companies to invest in and how much you want to invest. It’s now easier than ever before to incorporate the benefits of corporate bonds into your portfolio.
How XTBs work
Each XTB represents a fraction of a corporate bond, which is traded on ASX.
They have the same coupon rate and maturity date as their underlying bond. So, XTBs effectively mirror the cash flows of individual corporate bonds which are issued in the wholesale market.
They combine 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.
What’s being said about XTBs
“XTBs offer a superior fixed interest return for the risk investors are exposed to”. Shaun Liddicoat, Financial Adviser
“It’s a much safer way to invest – I don’t have to worry about share price volatility anymore.” Frank Gardiner, retail investor
Read more about how investors and advisers are using XTBs.
Overview of XTBs
- Trading on ASX since May 2015
- 36 XTBs have matured
- 505 coupon payments made
- $49.9 million paid in coupon (income) payments to XTB investors
- $152 million returned to XTB investors in face value payments at maturity
As at 30 June 2020
Want to know more?
XTBs are available across fixed and floating-rate bonds. They cover a wide 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. View the range.
