How the Largest Bond ETFs in Finland Performed

Each month, we check in on the performance of the largest Europe-domiciled bond exchange-traded funds available for sale in Finland.

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 €7.1 billion iShares € High Yield Corp Bond UCITS ETF IHYG, which gained 0.48%. The bottom performer was the €9.3 billion iShares VII PLC - iShares VII PLC - iShares $ Treasury Bond 3-7yr UCITS ETF CSBGU7, which lost 0.82%.

Here’s more about the performance of the largest bond ETFs.

iShares $ Treasury Bond 0-1yr UCITS ETF IB01

• Morningstar Medalist Rating
  : Neutral
• Morningstar Category
  : USD Ultra Short-Term Bond

The €23.9 billion iShares $ Treasury Bond 0-1yr UCITS ETF fell 0.66% in August. The loss on the fund was roughly in line with the 0.64% loss on the average fund in the USD ultra short-term bond category, underperforming 71% of its peers. Over the past 12 months, the iShares fund rose 4.59%, while the average fund in its category rose 4.58%. The fund, which launched in February 2019, has climbed 2.27% over the past three years annualized and gained 3.90% annualized over the past five years.

iShares Core € Corp Bond UCITS ETF IEAC

• Morningstar Medalist Rating
  : Bronze
• Morningstar Category
  : EUR Corporate Bond

The €13.4 billion iShares Core € Corp Bond UCITS ETF fell 0.09% in August. The loss on the fund edged out the 0.19% loss on the average fund in the EUR corporate bond category, outperforming 78% of its peers. Over the past 12 months, the iShares fund rose 0.96%, while the average fund in its category rose 0.52%. The fund, which launched in March 2009, has climbed 4.17% over the past three years annualized and lost 0.15% annualized over the past five years.

iShares Core Global Aggregate Bond UCITS ETF AGGG

• Morningstar Medalist Rating
  : Bronze
• Morningstar Category
  : Global Diversified Bond

The iShares Core Global Aggregate Bond UCITS ETF lost 0.40% in August, falling less than the average fund in the global diversified bond category, which fell 0.52%. The €12.3 billion fund has gained 1.34% over the past 12 months, while the average fund in its category is up 0.86%. The iShares fund, which launched in November 2017, has climbed 1.26% over the past three years annualized and lost 1.46% annualized over the past five years.

iShares $ Treasury Bond 1-3yr UCITS ETF IBTS

• Morningstar Medalist Rating
  : Neutral
• Morningstar Category
  : USD Government Bond - Short Term

The €11 billion iShares $ Treasury Bond 1-3yr UCITS ETF fell 0.74% in August. The loss on the fund was roughly in line with the 0.76% loss on the average fund in the USD government bond - short term category, underperforming 68% of its peers. Over the past 12 months, the iShares fund rose 3.29%, while the average fund in its category rose 3.20%. The fund, which launched in June 2006, has climbed 1.94% over the past three years annualized and gained 2.28% annualized over the past five years.

iShares VII PLC - iShares VII PLC - iShares $ Treasury Bond 3-7yr UCITS ETF CSBGU7

• Morningstar Medalist Rating
  : Neutral
• Morningstar Category
  : USD Government Bond

In August, the iShares VII PLC - iShares VII PLC - iShares $ Treasury Bond 3-7yr UCITS ETF fell 0.82%, while the average USD government bond fund lost 0.54%. The fund underperformed 83% of its peers. The €9.3 billion fund has climbed 1.65% over the past 12 months, outperforming the average fund in its category, which rose 1.53%. The iShares fund, which launched in June 2009, has climbed 1.62% over the past three years annualized and gained 0.57% annualized over the past five years.

iShares $ Short Duration Corp Bond UCITS ETF SDIG

• Morningstar Medalist Rating
  : Gold
• Morningstar Category
  : USD Corporate Bond - Short Term

In August, the iShares $ Short Duration Corp Bond UCITS ETF fell 0.70%, while the average USD corporate bond - short term fund lost 0.63%. The fund underperformed 80% of its peers. The €7.8 billion fund has climbed 3.66% over the past 12 months, performing roughly in line with the average fund in its category, which rose 3.72%. The iShares fund, which launched in October 2013, has climbed 2.78% over the past three years annualized and gained 2.79% annualized over the past five years.

iShares $ Corp Bond UCITS ETF LQDE

• Morningstar Medalist Rating
  : Bronze
• Morningstar Category
  : USD Corporate Bond

The €7.6 billion iShares $ Corp Bond UCITS ETF fell 0.32% in August. The loss on the fund edged out the 0.46% loss on the average fund in the USD corporate bond category, outperforming 75% of its peers. Over the past 12 months, the iShares fund rose 2.08%, while the average fund in its category rose 2.46%. The fund, which launched in March 2003, has climbed 2.25% over the past three years annualized and lost 0.58% annualized over the past five years.

iShares J.P. Morgan $ EM Bond UCITS ETF IEMB

• Morningstar Medalist Rating
  : Silver
• Morningstar Category
  : Global Emerging Markets Bond

In August, the iShares J.P. Morgan $ EM Bond UCITS ETF was roughly flat, while the average global emerging markets bond fund was unchanged. The fund outperformed 61% of its peers. The €7.3 billion fund has climbed 7.35% over the past 12 months, underperforming the average fund in its category, which rose 7.74%. The iShares fund, which launched in February 2008, has climbed 6.42% over the past three years annualized and gained 1.36% annualized over the past five years.

iShares € High Yield Corp Bond UCITS ETF IHYG

• Morningstar Medalist Rating
  : Neutral
• Morningstar Category
  : EUR High Yield Bond

The €7.1 billion iShares € High Yield Corp Bond UCITS ETF rose 0.48% in August. The gain on the fund beat the 0.37% gain on the average fund in the EUR high yield bond category, outperforming 75% of its peers. Over the past 12 months, the iShares fund rose 3.02%, while the average fund in its category rose 2.71%. The fund, which launched in September 2010, has climbed 6.25% over the past three years annualized and gained 2.69% annualized over the past five years.

iShares $ Treasury Bond 7-10yr UCITS ETF IDTM

• Morningstar Medalist Rating
  : Neutral
• Morningstar Category
  : USD Government Bond

In August, the iShares $ Treasury Bond 7-10yr UCITS ETF fell 0.69%, while the average USD government bond fund lost 0.54%. The fund underperformed 70% of its peers. The €6.5 billion fund has climbed 1.35% over the past 12 months, underperforming the average fund in its category, which rose 1.53%. The iShares fund, which launched in December 2006, has climbed 0.88% over the past three years annualized and lost 1.21% annualized over the past five years.