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 £21 billion iShares $ Treasury Bond 0-1yr UCITS ETF IB01, which gained 2.32%. The bottom performer was the £6.1 billion iShares J.P. Morgan $ EM Bond UCITS ETF IEMB, which lost 1.79%.
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
In September, the iShares $ Treasury Bond 0-1yr UCITS ETF rose 2.32%, while the average USD ultra short-term bond fund gained 2.02%. The fund outperformed 73% of its peers. The £21 billion fund has climbed 5.06% over the past year, performing roughly in line with the average fund in its category, which rose 4.92%. The iShares fund, which launched in February 2019, has climbed 1.63% over the past three years annualized and gained 3.92% annualized over the past five years.
iShares Core € Corp Bond UCITS ETF IEAC
- : BronzeMorningstar Medalist Rating
- : EUR Corporate BondMorningstar Category
The £11.4 billion iShares Core € Corp Bond UCITS ETF fell 1.70% in September. The loss on the fund edged out the 1.79% loss on the average fund in the EUR corporate bond category, outperforming 59% of its peers. Over the past year, the iShares fund fell 2.96%, while the average fund in its category fell 3.47%. The fund, which launched in March 2009, has climbed 3.46% over the past three years annualized and lost 0.43% annualized over the past five years.
iShares Core Global Aggregate Bond UCITS ETF AGGG
- : BronzeMorningstar Medalist Rating
- : Global Diversified BondMorningstar Category
In September, the iShares Core Global Aggregate Bond UCITS ETF fell 0.50%, while the average global diversified bond fund lost 0.70%. The fund outperformed 60% of its peers. The £10.7 billion fund has dropped 1.19% over the past year, falling less than the average fund in its category, which fell 1.91%. The iShares fund, which launched in November 2017, has climbed 0.84% over the past three years annualized and lost 1.63% annualized over the past five years.
iShares $ Treasury Bond 1-3yr UCITS ETF IBTS
- : NeutralMorningstar Medalist Rating
- : USD Government Bond - Short TermMorningstar Category
In September, the iShares $ Treasury Bond 1-3yr UCITS ETF rose 1.51%, while the average USD government bond - short term fund gained 1.53%. The fund outperformed 61% of its peers. The £9.6 billion fund has climbed 3.01% over the past year, performing roughly in line with the average fund in its category, which rose 2.96%. The iShares fund, which launched in June 2006, has climbed 1.19% over the past three years annualized and gained 2.17% 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 September, the iShares VII PLC - iShares VII PLC - iShares $ Treasury Bond 3-7yr UCITS ETF fell 0.03%, while the average USD government bond fund lost 1.25%. The fund outperformed 84% of its peers. The £7.8 billion fund has dropped 0.03% over the past year, falling less than the average fund in its category, which fell 2.64%. The iShares fund, which launched in June 2009, has climbed 0.78% over the past three years annualized and gained 0.30% annualized over the past five years.
iShares $ Corp Bond UCITS ETF LQDE
- : BronzeMorningstar Medalist Rating
- : USD Corporate BondMorningstar Category
The £7.1 billion iShares $ Corp Bond UCITS ETF fell 1.52% in September. The loss on the fund was worse than the 0.95% loss on the average fund in the USD corporate bond category, underperforming 72% of its peers. Over the past year, the iShares fund fell 2.74%, while the average fund in its category fell 1.60%. The fund, which launched in March 2003, has climbed 1.65% over the past three years annualized and lost 1.06% 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 1.15% in September, underperforming the average fund in the USD corporate bond - short term category, which rose 1.27%. The £6.7 billion fund has gained 2.91% over the past year, while the average fund in its category is up 3.13%. The iShares fund, which launched in October 2013, has climbed 2.03% over the past three years annualized and gained 2.61% annualized over the past five years.
iShares J.P. Morgan $ EM Bond UCITS ETF IEMB
- : SilverMorningstar Medalist Rating
- : Global Emerging Markets BondMorningstar Category
The £6.1 billion iShares J.P. Morgan $ EM Bond UCITS ETF fell 1.79% in September. The loss on the fund was worse than the 1.15% loss on the average fund in the global emerging markets bond category, underperforming 80% of its peers. Over the past year, the iShares fund rose 2.15%, while the average fund in its category rose 3.41%. The fund, which launched in February 2008, has climbed 5.57% over the past three years annualized and gained 1.04% annualized over the past five years.
Vanguard US Treasury 0-1 Year Bond UCITS ETF VDST
- : BronzeMorningstar Medalist Rating
- : USD Ultra Short-Term BondMorningstar Category
The £5.8 billion Vanguard US Treasury 0-1 Year Bond UCITS ETF rose 2.30% in September. The gain on the fund beat the 2.02% gain on the average fund in the USD ultra short-term bond category, outperforming 65% of its peers. Over the past year, the Vanguard fund rose 5.01%, while the average fund in its category rose 4.92%. The fund, which launched in September 2020, has climbed 1.60% over the past three years annualized and gained 3.89% annualized over the past five years.
iShares $ Treasury Bond 7-10yr UCITS ETF IDTM
- : NeutralMorningstar Medalist Rating
- : USD Government BondMorningstar Category
The £5.5 billion iShares $ Treasury Bond 7-10yr UCITS ETF fell 1.46% in September. The loss on the fund was worse than the 1.25% loss on the average fund in the USD government bond category, underperforming 67% of its peers. Over the past year, the iShares fund fell 2.25%, while the average fund in its category fell 2.64%. The fund, which launched in December 2006, has climbed 0.20% over the past three years annualized and lost 1.61% annualized over the past five years.
