Leading Australian financial services business, Betashares, today announced the launch of its 2031 Fixed Term Corporate Bond Active ETF (ASX: 31BB), the latest addition to its unique Defined Income ETF range.
The Fund will provide income-focused investors with exposure to a diversified portfolio of Australian dollar denominated investment grade corporate bonds maturing in the 12 months leading up to May 2031. It is designed to deliver stable monthly income and a return of capital at maturity, subject to market conditions.
The launch of 31BB builds on the existing Defined Income ETFs maturing in 2028, 2029 and 2030 and extends the options available to investors to align their income investments with specific time horizons and cash flow needs.
Betashares’ Defined Income ETF range, launched in May 2025, was the first of its kind in Australia.
The range is designed to fill a gap between traditional bond ETFs, which do not replicate the certainty of holding an individual bond to maturity, and alternatives such as term deposits and fixed-term annuities, which can come with limitations including illiquidity and lack of transparency.
Fixed maturity bond ETFs are widely adopted in markets such as the United States, where they are often used as an alternative to bank deposits for investors seeking predictable income and return outcomes without locking up capital.
Like other ETFs in the Betashares Defined Income range, 31BB combines a defined maturity date and regular monthly income with the liquidity and accessibility of an ETF. Investors can buy or sell units on the ASX at any time prior to maturity and will receive targeted fixed monthly income payments until the ETF’s maturity date, at which point investors receive the value of their units, mirroring the experience of holding an individual bond to maturity.
The Fund launches at a time when corporate bond yields are already reflecting expectations of higher cash rates, presenting an opportunity to capture attractive monthly income until the Fund’s May 2031 maturity.
Betashares CEO Alex Vynokur (pictured) said, the new ETF strengthens the Defined Income ETF range as a unique solution for investors seeking to boost income and predictability in their portfolio.
“The addition of 31BB to our Australian-first Defined Income ETF range will help investors meet their goals with a broader range of investment solutions,” Vynokur said.
“Betashares has been at the forefront of efforts to expand access to innovative fixed income investment solutions to meet the needs of Australian investors. With the extension of our Defined Income range, we are continuing to provide investors with a simple way to access a diversified portfolio of corporate bonds, offering predictable income together with the liquidity, transparency and diversification benefits of an ETF,” Vynokur concluded.
More information about the full range of Defined Income ETFs can be found here.
