ETFs investing in euro government bonds have been the best bond category since the beginning of the year in terms of inflows, with net flows of EUR 4.2 billion at the end of June 2025.
To identify the best-performing ETFs in this category, we looked for those with the best one-, three- and five-year returns, with the help of automation tools. Among the euro government bond funds that passed selection, four out of eight are from iShares.
The Best-Performing EUR Government Bond ETFs
- Xtrackers II iBoxx Eurozone Government Bond Yield Plus UCITS ETF XY4P
- Amundi Euro Government Bond 3-5Y UCITS ETF EM35
- Xtrackers II Eurozone Government Bond 5-7 UCITS ETF X57E
- iShares VII PLC - iShares € Govt Bond 3-7yr UCITS ETF EUR (Acc) CSBGE7
- iShares € Govt Bond 3-5yr UCITS ETF IBGX
- iShares € Govt Bond 5-7yr UCITS ETF IEGY
- iShares V PLC - iShares Italy Govt Bond UCITS ETF EUR (Dist) IITBm
- USBBG EUR Treasury 1-10 UCITS ETF SS1EUA
Over the past 12 months, EUR government bond funds have returned 2.50 percent. On a year-to-date basis, EUR government bond funds have remained stable over the past three years and have lost 2.13 percent over the past five years. The figures compare with those of theMorningstar Eurozone Core Bond index, which has returned 3.23 percent over the past 12 months, gained 0.71 percent annually over the past three years and lost 2.02 percent annually over the past five years.
What Are EUR Government Bond ETFs?
Euro government bond portfolios invest mainly in government or agency securities explicitly guaranteed by governments. These securities are either denominated in euros or hedged to eliminate exchange rate risk.
Screening for the Best-Performing EUR Government Bond ETFs
To find the best euro government bond funds, we examined data on returns over the past one, three and five years, using data available in Morningstar. We looked for European-domiciled exchange-traded funds in the top 25 percent of the category, using the lowest-cost primary stock classes for those periods. We also filtered out ETFs with a Morningstar Medalist Rating of Silver or Gold. We excluded funds with assets of less than EUR 100 million. Eight funds passed the selection.
Xtrackers II iBoxx Eurozone Government Bond Yield Plus UCITS ETF
- Ticker: XY4P
- Morningstar Medalist Rating: Gold
- Morningstar Rating: ★★★★★
The EUR 1.2 billion asset fund is up 3.52 percent over the past 12 months, outperforming the average of funds in its category, which is up 2.50 percent. The Xtrackers fund, launched in September 2010, has risen 1.51 percent annually over the past three years and lost 1.19 percent annually over the past five years.
Amundi Euro Government Bond 3-5Y UCITS ETF
- Ticker: EM35
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★
The EUR 1.7 billion fund has risen 4.42 percent over the past 12 months, outperforming the average fund in its category, which has risen 2.50 percent. The Amundi fund, launched in November 2017, has risen 1.22 percent annually over the past three years and lost 0.44 percent annually over the past five years.
Xtrackers II Eurozone Government Bond 5-7 UCITS ETF
- Ticker: X57E
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★
Over the past 12 months, the fund, which has EUR 1.1 billion in assets, has gained 4.12 percent, while the average fund in its category has risen 2.50 percent. The Xtrackers fund, launched in May 2007, has risen 0.82 percent annually over the past three years and lost 1.21 percent annually over the past five years.
iShares VII PLC - iShares € Govt Bond 3-7yr UCITS ETF EUR (Acc)
- Ticker: CSBGE7
- Morningstar Medalist Rating: Gold
- Morningstar Rating: ★★★★
Over the past 12 months, the iShares VII PLC - iShares € Govt Bond 3-7yr UCITS ETF EUR (Acc) fund, which has assets of EUR 911.6 million is up 4.40 percent, while the average fund in its category is up 2.50 percent. The iShares fund, launched in June 2009, is up 1.14 percent annually over the past three years and has lost 0.76 percent annually over the past five years.
iShares € Govt Bond 3-5yr UCITS ETF
- Ticker: IBGX
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★
Over the past 12 months, the iShares € Govt Bond 3-5yr UCITS ETF with EUR 2.3 billion in assets has risen 4.43%, while the average fund in its category has risen 2.50%. The iShares fund, launched in December 2006, has risen 1.24 percent annually over the past three years and lost 0.46 percent annually over the past five years.
iShares € Govt Bond 5-7yr UCITS ETF
- Ticker: IEGY
- Morningstar Medalist Rating: Gold
- Morningstar Rating: ★★★★
Over the past 12 months, the iShares € Govt Bond 5-7yr UCITS ETF, with assets of EUR 553.9 million, is up 4.26 percent, while the average fund in its category is up 2.50 percent. The iShares fund, launched in April 2009, has risen 0.90 percent annually over the past three years and lost 1.24 percent annually over the past five years.
iShares V PLC - iShares Italy Govt Bond UCITS ETF EUR (Dist)
- Ticker: IITBm
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★★
Over the past 12 months, the EUR 1.4 billion fund has gained 5.30 percent, while the average fund in its category has risen 2.50 percent. The iShares fund, launched in May 2012, has risen 2.77 percent annually over the past three years and lost 0.33 percent annually over the past five years.
UBS BBG EUR Treasury 1-10 UCITS ETF
- Ticker: SS1EUA
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★
Over the past 12 months, the EUR 1.2 billion UBS BBG EUR Treasury 1-10 UCITS ETF has risen 3.85 percent, while the average fund in its category has risen 2.50 percent. The UBS fund, launched in November 2013, has risen 0.98 percent annually over the past three years and lost 0.84 percent annually over the past five years.
