Macquarie Core Australian Bond Active ETF (MQFI) — Review & Analysis

MQFI is an actively managed ETF that aims to outperform the Bloomberg AusBond Composite 0+ Yr Index over the medium term, before fees. Macquarie positions it as a core fixed income allocation, built to provide regular income from high-quality bonds. It sits in the fixed income ETF category and is one of the newest ETFs on the ASX.

Unlike an index fund, the manager can move away from the benchmark to try to add value, so holdings and performance can differ from the index. Distributions are generally paid monthly, and a distribution reinvestment plan is available.

The management fee is 0.09% p.a. of net asset value, which is low for an active bond fund. There is also a performance fee of 20% of any outperformance above the index (after fees and expenses), subject to a high watermark. The fund launched on 31 August 2026, began trading on the ASX on 17 September 2026, and is issued by Macquarie Investment Management Australia Limited.

What to consider

• Performance fee: the 0.09% headline fee isn’t the full cost. In a year where the manager beats the index, the total cost will be higher.

• Active risk: the manager may underperform the index, and there’s no track record yet to judge the strategy.

• Interest rate and credit risk: bond prices fall when yields rise, and values can drop if credit quality deteriorates or an issuer defaults. With the RBA cash rate at 4.60% and the 10-year yield near 5.4%, rate moves are an important risk for bond funds.

• Role in a portfolio: it can suit the defensive part of a core portfolio. See how to build your core portfolio with ETFs.

• Alternatives: compare it against index bond ETFs using the Compare ETFs tool or the all ETFs directory.