Defined income ETFs: predictable income for uncertain markets

Explore how defined income ETFs offer predictable income and capital certainty, and why they might be a smart addition to your defensive portfolio.

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About this episode

In this Australian Finance Podcast episode, your host Owen Rask sits down with Cameron Gleeson from Betashares to explore how defined income ETFs can provide greater certainty for income-seeking investors. In this conversation, they unpack:

  • What defined income ETFs are and how they work
  • The difference between traditional bond ETFs and fixed-term ETFs
  • How ETFs like 28BB, 29BB and 30BB offer fixed maturity dates and steady distributions
  • Why these ETFs are gaining attention in a falling interest rate environment
  • How defined income ETFs compare to term deposits

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Topics Covered

  • What is Defined Income?
  • The Need for Predictable Income in Today’s Market
  • Traditional Bond ETFs vs Defined Income ETFs
  • How Fixed-Term ETFs Like 28BB, 29BB, 30BB Work
  • Understanding Yield to Maturity and Monthly Distributions
  • ETF Liquidity and Exit Options Before Maturity
  • Capital Certainty: Why This Matters to Investors
  • Use Cases for Retirees, Savers, and Term Deposit Alternatives
  • The Role of AAA (Cash ETF) and OZBD in a Defensive Portfolio
  • How to Blend Fixed-Term ETFs into Your Strategy
  • Risks, Credit Quality, and RBA Rate Cuts
  • What Happens at Maturity and Rolling to New Series

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