Looking For An Alternative To Hybrids?
- Consider Coolabah’s Global Floating-Rate High Yield Complex ETF (CBOE: YLDX)
- Currently yielding 6.5% p.a. (before fees and tax)
- Av. A+ portfolio credit rating
- Floating-Rate portfolio of bonds and hybrids issued by global banks and insurers with enhanced yields
- Please read the PDS to better understand the risks, and note that past performance does not assure future returns
Currently yielding
6.5% p.a.
before fees as of 31-Aug-2026
The Coolabah Global Floating-Rate High Yield Complex ETF (CBOE: YLDX) is currently yielding 6.5% p.a. before fees with geared exposure to senior and Tier 2 bonds primarily issued by Australia’s four biggest banks. This portfolio is floating-rate and benefits from higher interest rates. It also has an average A+ credit rating and offers daily redemption rights.
It has the capacity to invest in government bonds, corporate bonds and hybrid securities issued in G10 currencies. It does not invest in sub-investment grade bonds, private debt, or equities.
YLDX is currently offering a running yield of 6.5% p.a. before fees with an average portfolio credit rating of A+, compared to 5 yr major bank hybrids which are offering an average non-cash yield (ie inclusive franking credits) of 6.3% p.a. with a BBB credit rating.
| YLDX | 5 Yr Major Bank Hybrids | |
| Avg Credit Rating | A+ | BBB |
| Gross Running Yield | 6.5% | 6.3% |
| Liquidity | Daily redemption rights | ASX hybrid liquidity |
| Senior/Tier 2/Hybrid Portfolio Weight | 208% / 56% / 0% | 0% / 0% / 100% |
| Market Size | $29 trillion | $0.03 trillion |
| No. Securities in Universe | > 60,000 | 19 |
Source: Coolabah Capital Investments, Bloomberg. Disclaimer: The yield displayed for the Coolabah Global Floating-Rate High Yield Complex ETF is the annual running yield before fees. The yield shown changes daily and may be different on the day you invest. All investments carry risks, including that the value of investments may vary, future returns may differ from past returns, and that your capital is not guaranteed. The Fund has a different risk profile to the other comparisons, including, amongst other things, that it uses leverage, which means that both gains and losses may be amplified. To understand the Fund’s risks better, please refer to the Product Disclosure Statement. The yield shown for hybrid securities is the average yield or interest rate, inclusive of any franking credits, for hybrids securities issued by the Australian major banks with a 5 year maturity date.
Ratings
Important Information
Disclaimer
Returns are shown as of 31 August 2026 and are after management fees and costs. Yields are shown as of 31 August 2026 and are before management fees and costs, unless otherwise displayed. Both returns and yields can change daily and may be different on the day you invest. All investments carry risks, including that the value of investments may vary, future returns may differ from past returns, and that your capital is not guaranteed. The funds have a different risk profiles to the other comparisons, including, amongst other things, that they invest in bonds, not hybrids or equities, and that they can use leverage, which means that both gains and losses may be amplified. To understand the Fund’s risks better, please refer to the respective Product Disclosure Statement (PDS) and Target Market Determination (TMD).
Equity Trustees Limited (Equity Trustees) ABN 46 004 031 298 AFSL 240975, is the responsible entity for the Coolabah Global Floating-Rate High Yield Complex ETF. Equity Trustees is a subsidiary of EQT Holdings Limited ABN 22 607 797 615, a publicly listed company on the Australian Securities Exchange (ASX: EQT).
This information has been prepared by Coolabah Capital Investments (Retail) Pty Limited, a wholly owned subsidiary of Coolabah Capital Investments Pty Ltd. It is general information only and is not intended to provide you with financial advice. You should not rely on any information herein in making any investment decisions. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. The PDS and TMD for the funds should be considered before deciding whether to acquire or hold units in it. A PDS and TMD for these products can be obtained by visiting www.coolabahcapital.com. Neither Coolabah Capital Investments (Retail) Pty Limited, Equity Trustees Limited nor its respective shareholders, directors and associated businesses assume any liability to investors in connection with any investment in the funds, or guarantees the performance of any obligations to investors, the performance of the funds or any particular rate of return. The repayment of capital is not guaranteed. Investments in the funds are not deposits or liabilities of any of the above-mentioned parties, nor of any Authorised Deposit-taking Institution. The funds are subject to investment risks, which could include delays in repayment and/or loss of income and capital invested. Past performance is not an indicator of nor assures any future returns or risks. Coolabah Capital Investments (Retail) Pty Limited (ACN 153 555 867) is an authorised representative (#000414337) of Coolabah Capital Institutional Investments Pty Ltd (AFSL 482238).
From 5 October 2021, a TMD is required to be made available under the Design & Distribution Obligations. It describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the TMD for this financial product may need to be reviewed.
Ratings & Research Disclaimers
Zenith Investment Partners
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned YLDX, May 2025) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.