Each month, we check in on the performance of the largest Europe-domiciled bond exchange-traded funds available for sale in UK.
When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.
Out of the 10 largest Europe-domiciled bond ETFs, the top performer last month was the £6 billion iShares J.P. Morgan $ EM Bond UCITS ETF IEMB, which gained 2.38%. The bottom performer was the £5.6 billion Amundi Index Solutions - Amundi EUR Corporate Bond ESG CC4, which lost 0.06%.
Here’s more about the performance of the largest bond ETFs.
iShares $ Treasury Bond 0-1yr UCITS ETF IB01
- : NeutralMorningstar Medalist Rating
- : USD Ultra Short-Term BondMorningstar Category
The iShares $ Treasury Bond 0-1yr UCITS ETF gained 1.83% in June, performing roughly in line with the average fund in the USD ultra short-term bond category, which rose 1.76%. The £19.9 billion fund has gained 7.28% over the past year, while the average fund in its category is up 7.21%. The iShares fund, which launched in February 2019, has climbed 3.19% over the past three years annualized and gained 4.26% annualized over the past five years.
iShares Core € Corp Bond UCITS ETF IEAC
- : BronzeMorningstar Medalist Rating
- : EUR Corporate BondMorningstar Category
The iShares Core € Corp Bond UCITS ETF lost 0.06% in June, falling further than the average fund in the EUR corporate bond category, which fell 0.01%. The £12.2 billion fund has gained 3.16% over the past year, while the average fund in its category is up 2.90%. The iShares fund, which launched in March 2009, has climbed 5.07% over the past three years annualized and gained 0.26% annualized over the past five years.
iShares Core Global Aggregate Bond UCITS ETF AGGG
- : BronzeMorningstar Medalist Rating
- : Global Diversified BondMorningstar Category
The £10.7 billion iShares Core Global Aggregate Bond UCITS ETF rose 0.84% in June. The gain on the fund was roughly in line with the 0.85% gain on the average fund in the global diversified bond category, leaving it in the 57th percentile for performance. Over the past year, the iShares fund rose 3.84%, while the average fund in its category rose 3.49%. The fund, which launched in November 2017, has climbed 1.86% over the past three years annualized and lost 0.82% annualized over the past five years.
iShares $ Treasury Bond 1-3yr UCITS ETF IBTS
- : NeutralMorningstar Medalist Rating
- : USD Government Bond - Short TermMorningstar Category
In June, the iShares $ Treasury Bond 1-3yr UCITS ETF rose 1.62%, while the average USD government bond - short term fund gained 1.63%. The fund placed in the 63rd percentile for performance. The £9.4 billion fund has climbed 6.29% over the past year, performing roughly in line with the average fund in its category, which rose 6.19%. The iShares fund, which launched in June 2006, has climbed 2.91% over the past three years annualized and gained 2.73% annualized over the past five years.
iShares VII PLC - iShares VII PLC - iShares $ Treasury Bond 3-7yr UCITS ETF CSBGU7
- : NeutralMorningstar Medalist Rating
- : USD Government BondMorningstar Category
In June, the iShares VII PLC - iShares VII PLC - iShares $ Treasury Bond 3-7yr UCITS ETF rose 1.65%, while the average USD government bond fund gained 2.09%. The fund placed in the 92nd percentile for performance. The £8.1 billion fund has climbed 5.72% over the past year, underperforming the average fund in its category, which rose 6.22%. The iShares fund, which launched in June 2009, has climbed 2.62% over the past three years annualized and gained 1.28% annualized over the past five years.
iShares $ Corp Bond UCITS ETF LQDE
- : BronzeMorningstar Medalist Rating
- : USD Corporate BondMorningstar Category
The £7 billion iShares $ Corp Bond UCITS ETF rose 1.64% in June. The gain on the fund was roughly in line with the 1.63% gain on the average fund in the USD corporate bond category, leaving it in the 73rd percentile for performance. Over the past year, the iShares fund rose 7.44%, while the average fund in its category rose 7.72%. The fund, which launched in March 2003, has climbed 3.35% over the past three years annualized and gained 0.45% annualized over the past five years.
iShares $ Short Duration Corp Bond UCITS ETF SDIG
- : GoldMorningstar Medalist Rating
- : USD Corporate Bond - Short TermMorningstar Category
The iShares $ Short Duration Corp Bond UCITS ETF gained 1.70% in June, performing roughly in line with the average fund in the USD corporate bond - short term category, which rose 1.71%. The £6.6 billion fund has gained 7.07% over the past year, while the average fund in its category is up 6.96%. The iShares fund, which launched in October 2013, has climbed 3.84% over the past three years annualized and gained 3.28% annualized over the past five years.
iShares € High Yield Corp Bond UCITS ETF IHYG
- : NeutralMorningstar Medalist Rating
- : EUR High Yield BondMorningstar Category
The iShares € High Yield Corp Bond UCITS ETF gained 0.09% in June, outperforming the average fund in the EUR high yield bond category, which rose 0.07%. The £6.1 billion fund has gained 4.45% over the past year, while the average fund in its category is up 4.32%. The iShares fund, which launched in September 2010, has climbed 6.72% over the past three years annualized and gained 2.80% annualized over the past five years.
iShares J.P. Morgan $ EM Bond UCITS ETF IEMB
- : SilverMorningstar Medalist Rating
- : Global Emerging Markets BondMorningstar Category
In June, the iShares J.P. Morgan $ EM Bond UCITS ETF rose 2.38%, while the average global emerging markets bond fund gained 2.03%. The fund placed in the 35th percentile for performance. The £6 billion fund has climbed 13.83% over the past year, outperforming the average fund in its category, which rose 13.04%. The iShares fund, which launched in February 2008, has climbed 7.58% over the past three years annualized and gained 2.25% annualized over the past five years.
Amundi Index Solutions - Amundi EUR Corporate Bond ESG CC4
- : NeutralMorningstar Medalist Rating
- : EUR Corporate BondMorningstar Category
The Amundi Index Solutions - Amundi EUR Corporate Bond ESG lost 0.06% in June, falling further than the average fund in the EUR corporate bond category, which fell 0.01%. The £5.6 billion fund has gained 3.02% over the past year, while the average fund in its category is up 2.90%. The Amundi fund, which launched in April 2018, has climbed 4.92% over the past three years annualized and gained 0.13% annualized over the past five years.
