Thanks. It's good to know that bond ETFs do the trick. I'll see if I can find some other bonds listed that aren't Australian Government. Thanks for the site Andy R.
Please also research strategies for BOND LADDERS... and Preferred shares.
Bond ladders -- you hold the bonds directly, instead of in a pooled index fund. Pooled funds can go down over the short to mid term, as interest rates rise.
I like Bond Ladders for people building a long term strategy for annual payouts, guaranteed. Bond index funds are a nicer for improved liquidity if you are holding them as a place to keep cash for asset allocation rebalancing.
Preferred Shares - depending on your risk, these shares pay out to their holders AFTER the bonds pay out, but BEFORE the general stock dividends are paid out. Also have a higher order of protection if the company fails.