Best of the Best 2025: Best Fixed-Interest Exchange Traded Funds

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VanEck Australia has been named Money's Best Fixed Interest Exchange Traded Funds as part of the Best of the Best awards.

best of the best 2025 best fixed interest etf

It's been a tough few years for fixed interest. After experiencing one of the worst periods in decades during the pandemic, the asset class won back investors who were searching for higher yields as central banks began lifting interest rates.

Part of this rejuvenated interest has been evident in the billions of dollars that Australian investors have poured into fixed-income exchange traded funds (ETFs) over the past few years through providers such as VanEck Australia.

"We are delighted that VanEck Australia and our Floating Rate ETF (ASX: FLOT) have been recognised in Money's 2025 Best of the Best Awards," says Arian Neiron, chief executive and managing director of VanEck Asia Pacific. "It is satisfying that FLOT has helped so many Australians over the past rate-hiking cycle and we are honoured to receive the award."

While it isn't typically the dominant part of many portfolios, investors may benefit from the income generation that an allocation to fixed income can provide, not to mention the inverse relationship it often has with shares, which can help reduce volatility.

Neiron makes the case that investors wanting exposure to fixed-income assets such as bonds have traditionally encountered barriers - barriers which, he says, ETFs have helped break down.

"Bonds, particularly bonds issued by governments or companies overseas, can be difficult for everyday investors to access and there is generally a high minimum investment. ETFs have made it much easier to access bonds from across the globe," he says.

"Bond ETFs invest in various fixed-income securities such as corporate or government bonds and provide a low-cost way to access the bond market. In addition, one of the benefits of investing in bonds via an ETF is that it enables investors to get exposure to a diversified portfolio of bonds in a single trade."

Beyond the sphere of fixed income, Neiron says VanEck will maintain its track record of innovation in the ETF space as investor interest continues to grow.

"As the Australian ETF market rapidly expands, VanEck has been the first to offer many innovative investment solutions, with full transparency. Many of our funds have been first of 
their kind on the ASX, most recently our Bitcoin and global defence ETFs."

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