How defined income ETFs can give your portfolio certainty

Aug 4, 2025

Cameron Gleeson, a senior team member at BetaShares, dives into defined income ETFs that provide certainty for income-seeking investors. He explains how these ETFs differ from traditional bonds, showcasing their fixed maturity dates and steady distributions. Gleeson discusses their rising popularity in a falling interest rate environment and compares them to term deposits. He emphasizes their potential for retirees and highlights important factors like credit quality and liquidity that investors should consider when incorporating these ETFs into their strategies.

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INSIGHT

Falling Term Deposit Rates

Term deposit interest rates are falling as banks price in expected Reserve Bank rate cuts.
This results in lower long-term fixed returns for savers compared to the cash rate today.

INSIGHT

Bonds Basics and Benefits

Bonds act as loans where investors lend money to issuers expecting interest and principal return at maturity.
They are defensive assets providing income and diversification benefits in a portfolio.

INSIGHT

Defined Income ETFs Explained

Defined income ETFs like 28BB have fixed maturity dates, offering more income certainty than traditional bond ETFs.
They distribute monthly income and return principal at maturity, similar to term deposits but with diversified corporate bonds.

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