This ETF offers exposure to bonds denominated in the currencies of New Zealand and Australia, making AUNZ a potentially useful tool for U.S.-based investors looking to add some geographic diversification to the fixed income side of their portfolios. Because Australia maintains a commodity-rich economy, it may be an appealing destination for fixed income investors; the combination of relatively high interest rates and low credit risk can be a winning combination. AUNZ can be used in a number of different ways; this product might be appealing as a component of a long-term, buy-and-hold portfolio for those looking to gain global bond exposure, or could be used in more tactical settings to capitalize on perceived short-term mispricings. There are a couple aspects of AUNZ that are worth noting. First, the underlying bonds are denominated in the local currencies. That means that exchange rate fluctuations will impact the value of this fund (some international bond ETFs focus on debt denominated in U.S. dollars, which essentially strips out the exchange rate component). It should also be noted that AUNZ is actively managed, meaning that there is no index that this fund seeks to replicate. That feature gives the manager some degree of flexibility in constructing the portfolio, and the active management comes without a significant expense ratio hike that could diminish some of the appeal. Note that prior to October 2011, AUNZ traded under the ticker BNZ, and offered exposure to the New Zealand dollar. While there are a number of ETFs that now offer exposure to international debt, there are few as targeted or precise as AUNZ; investors looking to add some Australian debt exposure to their portfolios don;t have a lot of options.
The adjacent table gives investors an individual Realtime Rating for AUNZ on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the International Government Bonds with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb Category.
|Agency Mortgage Backed||0.0%|
|Commercial Mortgage Backed||0.0%|
|Non Agency Residential Mortgage Backed||0.0%|
|Cash And Equivalents||0.0%|
|US Municipal Tax Advantaged||0.0%|
|0% to 1%||5.36%|
|1% to 2%||1.76%|
|2% to 3%||10.56%|
|3% to 4%||8.81%|
|4% to 5%||28.21%|
|5% to 6%||34.02%|
|6% to 7%||9.3%|
|7% to 8%||0.0%|
|8% to 9%||0.0%|
|9% to 10%||0.0%|
|Greater Than 10%||0.0%|
|Less Than 1 Year||0.0%|
This ETF is currently available for commission free trading on the following platforms: (E*TRADE)
There are 5 other ETFs in the International Government Bonds ETFdb Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of AUNZ relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb Category.
2014 Morningstar, Inc. All Rights Reserved. The information contained herein: ( 1 ) is proprietary to Morningstar and/or its content providers; ( 2 ) may not be copied or distributed; and ( 3 ) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.