Top 10 ASX bond ETFs to watch in 2026

Bond ETFs hold debt securities – government bonds, corporate notes and similar instruments – and aim to track the performance of a fixed income index. The 10 funds in this list all trade on the ASX, though their underlying exposure differs: most focus on Australian dollar-denominated bonds, while Vanguard Global Aggregate Bond Index (Hedged) ETF ($VBND) follows a global index hedged into Australian dollars and Betashares Australian Bank Senior Float Rt Bd ETF ($QPON) targets floating rate notes rather than fixed-rate securities.

How we built this list: We selected these funds based on their industry or investment category and ordered them by assets under management. Prices are updated daily, and the list and supporting content are reviewed roughly every quarter. All data is sourced from Stake. This list isn't a recommendation and isn't ordered by suitability.

Past performance is not a reliable indicator of future performance.

Source: Stake market data. Figures in A$. Data updated as of 10 August 2026.

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1. Vanguard Global Aggregate Bond Index (Hedged) ETF ($VBND)

Vanguard Global Aggregate Bond Index (Hedged) ETF (VBND) share price over the last year: started at A$42.24, ended at A$39.33, a change of −6.9%. Range over the period: high A$43.05, low A$39.05. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $39.33 · Daily: 0.2% · AUM: $4.42B · MER: 0.20%

Vanguard Global Aggregate Bond Index (Hedged) ETF ($VBND) aims to track the Bloomberg Global Aggregate Float-Adjusted and Scaled Index, hedged into Australian dollars. The index is rules-based and market value weighted, drawing from investment grade fixed rate bonds across government, government-related, corporate and securitised issuers globally.

Most funds in this list focus on Australian dollar-denominated debt, while $VBND pulls from global fixed income markets. The fund is currency-hedged. Only bonds meeting the investment grade threshold are eligible for inclusion, so lower-rated and speculative debt falls outside the index's scope.

2. iShares Core Composite Bond ETF ($IAF)

iShares Core Composite Bond ETF (IAF) share price over the last year: started at A$103.78, ended at A$101.34, a change of −2.4%. Range over the period: high A$104.45, low A$99.87. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $101.34 · Daily: 0.06% · AUM: $3.75B · MER: 0.10%

The Bloomberg AusBond Composite 0+ Yr Index covers the Australian dollar investment grade bond market, and iShares Core Composite Bond ETF ($IAF) aims to track its performance before fees and expenses. Eligible securities include debt issued by the Australian Treasury, semi-government entities, supranational and sovereign bodies, and corporate issuers. All holdings are investment grade, setting a credit quality threshold for inclusion.

The 'composite' name signals the breadth of issuer types the index draws from – government debt and corporate bonds both qualify, provided they meet the investment grade requirement. $IAF is structured as a passive fund, meaning its holdings track the index composition rather than a manager's active selections.

3. Vanguard Australian Fixed Interest Index ETF ($VAF)

Vanguard Australian Fixed Interest Index ETF (VAF) share price over the last year: started at A$46.56, ended at A$45.38, a change of −2.5%. Range over the period: high A$46.95, low A$44.85. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $45.38 · Daily: 0.09% · AUM: $3.70B · MER: 0.10%

Vanguard Australian Fixed Interest Index ETF ($VAF) aims to track the Bloomberg AusBond Composite 0+ Yr Index, which covers Australian dollar-denominated fixed and floating rate bonds. The fund is designed to hold a mix of both security types, matching the risk profile of the index rather than picking individual bonds.

With a MER of 0.10%, $VAF's annual cost sits at a clearly stated level. The fund holds $3.70B in assets under management.

4. Betashares Australian Bank Senior Float Rt Bd ETF ($QPON)

Betashares Australian Bank Senior Float Rt Bd ETF (QPON) share price over the last year: started at A$26.05, ended at A$26.29, a change of +0.9%. Range over the period: high A$26.36, low A$26.04. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $26.29 · Daily: 0.0% · AUM: $2.21B · MER: 0.22%

Betashares Australian Bank Senior Float Rt Bd ETF ($QPON) aims to track the Solactive Australian Bank Senior Floating Rate Bond Index, which holds floating rate notes – often called FRNs – issued by Australian banks. Unlike fixed-rate bonds, FRNs pay interest that adjusts with a reference rate rather than staying constant for the life of the bond. The index focuses on the largest and most liquid of these instruments, and the 'senior' label means the bonds rank above subordinated debt in a bank's capital structure when it comes to repayment priority.

5. Betashares Australian Investment Grade Corp Bd ETF ($CRED)

Betashares Australian Investment Grade Corp Bd ETF (CRED) share price over the last year: started at A$23.73, ended at A$22.75, a change of −4.1%. Range over the period: high A$24.01, low A$22.44. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $22.75 · Daily: 0.1% · AUM: $1.87B · MER: 0.25%

Fixed-rate corporate bonds from Australian investment grade issuers make up the portfolio of Betashares Australian Investment Grade Corp Bd ETF ($CRED), which aims to track the Solactive Australian Investment Grade Corporate Bond Select TR Index. The index targets the higher-yielding end of that credit universe, according to the fund's mandate. All the underlying bonds are denominated in Australian dollars, keeping the portfolio within the domestic corporate fixed income market.

6. Betashares Australian Composite Bond ETF ($OZBD)

Betashares Australian Composite Bond ETF (OZBD) share price over the last year: started at A$45.35, ended at A$43.69, a change of −3.7%. Range over the period: high A$45.79, low A$43.08. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $43.69 · Daily: 0.05% · AUM: $1.39B · MER: 0.19%

Betashares Australian Composite Bond ETF ($OZBD) aims to track the Bloomberg Australian Enhanced Yield Composite Bond Index. That index covers fixed-rate, Australian dollar-denominated bonds across investment-grade corporate issuers, government debt, government-related securities and supranational bonds.

The fund's mandate is designed to lean toward higher-yielding securities within that investment-grade universe, rather than simply weighting by market size. Its MER is 0.19%.

7. Vanguard Australian Government Bond Index ETF ($VGB)

Vanguard Australian Government Bond Index ETF (VGB) share price over the last year: started at A$47.21, ended at A$45.84, a change of −2.9%. Range over the period: high A$47.62, low A$45.32. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $45.84 · Daily: 0.04% · AUM: $1.38B · MER: 0.16%

Vanguard Australian Government Bond Index ETF ($VGB) aims to track the Bloomberg AusBond Government 0+ Index, a benchmark covering Australian government bonds across maturities. The fund is designed to hold all securities in that index where practical, or a representative sample otherwise.

The MER is 0.16%, and the fund holds $1.38B in assets. The portfolio is concentrated on government-issued debt, so credit quality sits at the sovereign level rather than the corporate or mixed-issuer level you'd find in a broader fixed income fund.

8. BetaShares Australian Government Bond ETF ($AGVT)

BetaShares Australian Government Bond ETF (AGVT) share price over the last year: started at A$42.50, ended at A$40.72, a change of −4.2%. Range over the period: high A$43.04, low A$40.06. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $40.72 · Daily: 0.1% · AUM: $1.14B · MER: 0.22%

BetaShares Australian Government Bond ETF ($AGVT) aims to track the Solactive Australian Government 7-12 Year AUD TR Index. The portfolio is built around Australian dollar-denominated fixed-rate bonds, with the majority issued by Australia's federal and state governments. The index also includes a component from supranational organisations and government-related agencies, both Australian and foreign.

The 7-12 year maturity range means $AGVT targets a specific slice of the bond market rather than covering the full spread of durations. Fixed-rate bonds at that range are more sensitive to shifts in interest rates than shorter-dated securities, so the fund's value tends to move more when rates change.

9. iShares Core Corporate Bond ETF ($ICOR)

iShares Core Corporate Bond ETF (ICOR) share price over the last year: started at A$96.80, ended at A$94.37, a change of −2.5%. Range over the period: high A$97.33, low A$93.27. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $94.37 · Daily: -0.04% · AUM: $510.7M · MER: 0.15%

iShares Core Corporate Bond ETF ($ICOR) aims to track the Bloomberg AusBond Credit 0+ Yr Index, which covers investment grade fixed income securities from corporate issuers. The 'AusBond' label signals a focus on the Australian dollar debt market. The '0+ Yr' component means the index holds bonds across all maturities, from short-dated notes through to longer-term issues.

The fund's mandate centres on company-issued debt rather than government or semi-government bonds. Holdings are limited to investment grade securities. That threshold doesn't eliminate risk – $ICOR remains exposed to issuer credit risk and interest rate movements.

10. State Street SPDR S&P/ASX iBoxx Australian Bd ETF ($BOND)

State Street SPDR S&P/ASX iBoxx Australian Bd ETF (BOND) share price over the last year: started at A$26.00, ended at A$25.27, a change of −2.8%. Range over the period: high A$26.19, low A$24.84. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $25.27 · Daily: 0.2% · AUM: $51.0M · MER: 0.10%

State Street SPDR S&P/ASX iBoxx Australian Bond ETF ($BOND) aims to match the performance of the S&P/ASX iBoxx Australian Fixed Interest Diversified 0+ Index before fees and costs. That index is designed to measure the Australian bond market using a broad, diversified set of fixed-interest securities – capturing the market as a whole rather than a targeted slice of it. $BOND follows the index passively, so its holdings shift as the benchmark composition changes.

The "diversified" label in the index name signals that the benchmark draws from across the Australian fixed-income market rather than concentrating in a particular issuer type or maturity range. That breadth is built into the index's construction rules, not the fund manager's discretion.

Common questions

How do I invest in ASX bond ETFs in Australia?

Bond ETFs on the ASX trade like ordinary shares – you buy and sell them through a share trading platform during market hours. Each fund in this list is ASX-listed, so you search the ticker and place an order the same way you would for any listed security. The main practical advantage over buying bonds directly is access: individual bonds often require large minimum investments, whereas an ETF holds a diversified pool of many bonds in a single trade.

What are the key risks of ASX bond ETFs?

Interest rate risk is central – bond prices generally move in the opposite direction to interest rates, and funds holding longer-dated bonds tend to be more sensitive to that movement. Credit risk matters too: even investment-grade bonds can fall in value if an issuer's financial position deteriorates. For the globally focused fund in this list, currency movements are a factor, though it uses hedging to reduce the impact of swings between the AUD and the currencies of its underlying holdings. In stressed markets, the underlying bonds can also become harder to trade, which may widen the gap between an ETF's market price and the value of its holdings.

What are the main types of bond ETFs in this list?

The funds here cover several distinct approaches – some focus purely on government bonds, others on corporate debt, and several blend both. One tracks floating-rate notes issued by Australian banks, where the interest payment adjusts with market rates rather than staying fixed, so it behaves quite differently from the fixed-rate funds when rates move. The only globally focused fund holds investment-grade bonds from many countries and hedges the currency exposure back into Australian dollars, making its issuer and geographic mix much broader than the domestic-only funds.

Disclaimer

Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs before making an investment decision. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

This is not personal financial advice nor a recommendation to invest in the securities listed. Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

Please refer to hellostake.com/pricing for the fees that apply. When you trade securities priced in another currency, currency conversion fees may apply and movements in the exchange rate may affect your returns.

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