State Street® SPDR® S&P®/ASX iBoxx Australian Bond ETF (BOND) — Review & Analysis

BOND tracks the S&P/ASX iBoxx Australian Fixed Interest Diversified 0+ Index — a broad Australian fixed income benchmark covering Treasuries, state government bonds and investment-grade corporate credit. The 0.10% p.a. management fee makes BOND one of the cheapest broad bond ETFs on the ASX, matching IAF. AUM is $43.58 million as at May 2026, smaller than IAF's $3.60B but materially cheaper to manage at scale. Compare BOND across the fixed income cohort on our fixed income ETF page or use the Compare ETFs tool to put it side-by-side with IAF and VAF.

The benchmark methodology is similar to broader Australian bond trackers — investment-grade only, weighted toward government issuers (Australian Treasuries dominate), with some short to medium-duration corporate credit included. Average portfolio duration sits around 5-6 years, meaning BOND moves materially with RBA rate changes. The diversified structure provides solid defensive characteristics without the volatility decay risk of leveraged products.

BOND's closest peers are IAF (0.10%, $3.60B) and VAF — all three deliver functionally similar broad Australian bond exposure at competitive fees. The differentiators are issuer brand (State Street vs iShares vs Vanguard) and AUM scale. BOND's smaller AUM can mean slightly wider bid-ask spreads at execution compared to IAF, but for long-term holders that's a minor concern.

BOND is unhedged (irrelevant for AUD-denominated Australian fixed income). The fund pays regular distributions reflecting underlying coupon income, which is fully taxable as ordinary income (no franking credits). Our bond and fixed income ETFs guide compares BOND alongside every bond option on the ASX on yield, duration and structure.