How the Largest Bond ETFs in Norway Performed

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

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 NOK 76.7 billion iShares € High Yield Corp Bond UCITS ETF IHYG, which held steady. The bottom performer was the NOK 100.3 billion iShares VII PLC - iShares VII PLC - iShares $ Treasury Bond 3-7yr UCITS ETF CSBGU7, which lost 1.29%.

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

In August, the iShares $ Treasury Bond 0-1yr UCITS ETF fell 1.13%, while the average USD ultra short-term bond fund lost 1.10%. The fund underperformed 71% of its peers. The NOK 258.1 billion fund has dropped 3.42% over the past 12 months, performing roughly in line with the average fund in its category, which fell 3.42%. The iShares fund, which launched in February 2019, has climbed 0.20% over the past three years annualized and gained 5.05% annualized over the past five years.

iShares Core € Corp Bond UCITS ETF IEAC

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

The iShares Core € Corp Bond UCITS ETF lost 0.56% in August, falling less than the average fund in the EUR corporate bond category, which fell 0.66%. The NOK 144.3 billion fund has lost 6.77% over the past 12 months, while the average fund in its category is down 7.17%. The iShares fund, which launched in March 2009, has climbed 2.07% over the past three years annualized and gained 0.96% annualized over the past five years.

iShares Core Global Aggregate Bond UCITS ETF AGGG

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

The NOK 132.8 billion iShares Core Global Aggregate Bond UCITS ETF fell 0.87% in August. The loss on the fund edged out the 0.99% loss on the average fund in the global diversified bond category, outperforming 73% of its peers. Over the past 12 months, the iShares fund fell 6.41%, while the average fund in its category fell 6.86%. The fund, which launched in November 2017, has dropped 0.78% over the past three years annualized and lost 0.37% 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 NOK 118.7 billion iShares $ Treasury Bond 1-3yr UCITS ETF fell 1.21% in August. The loss on the fund was roughly in line with the 1.22% 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 fell 4.61%, while the average fund in its category fell 4.70%. The fund, which launched in June 2006, has dropped 0.12% over the past three years annualized and gained 3.42% 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 1.29%, while the average USD government bond fund lost 1.01%. The fund underperformed 83% of its peers. The NOK 100.3 billion fund has dropped 6.13% over the past 12 months, performing roughly in line with the average fund in its category, which fell 6.24%. The iShares fund, which launched in June 2009, has dropped 0.43% over the past three years annualized and gained 1.69% 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

The NOK 84.2 billion iShares $ Short Duration Corp Bond UCITS ETF fell 1.16% in August. The loss on the fund was worse than the 1.09% loss on the average fund in the USD corporate bond - short term category, underperforming 80% of its peers. Over the past 12 months, the iShares fund fell 4.27%, while the average fund in its category fell 4.22%. The fund, which launched in October 2013, has climbed 0.71% over the past three years annualized and gained 3.93% annualized over the past five years.

iShares $ Corp Bond UCITS ETF LQDE

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

The NOK 82.6 billion iShares $ Corp Bond UCITS ETF fell 0.79% in August. The loss on the fund edged out the 0.93% loss on the average fund in the USD corporate bond category, outperforming 75% of its peers. Over the past 12 months, the iShares fund fell 5.73%, while the average fund in its category fell 5.38%. The fund, which launched in March 2003, has climbed 0.19% over the past three years annualized and gained 0.52% 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

The NOK 78.5 billion iShares J.P. Morgan $ EM Bond UCITS ETF fell 0.47% in August. The loss on the fund was roughly in line with the 0.48% loss on the average fund in the global emerging markets bond category, outperforming 61% of its peers. Over the past 12 months, the iShares fund fell 0.86%, while the average fund in its category fell 0.50%. The fund, which launched in February 2008, has climbed 4.28% over the past three years annualized and gained 2.48% 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 NOK 76.7 billion iShares € High Yield Corp Bond UCITS ETF was unchanged in August. The gain on the fund beat the 0.10% loss on the average fund in the EUR high yield bond category, outperforming 75% of its peers. Over the past 12 months, the iShares fund fell 4.87%, while the average fund in its category fell 5.15%. The fund, which launched in September 2010, has climbed 4.10% over the past three years annualized and gained 3.83% annualized over the past five years.

iShares $ Treasury Bond 7-10yr UCITS ETF IDTM

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

The iShares $ Treasury Bond 7-10yr UCITS ETF lost 1.16% in August, falling further than the average fund in the USD government bond category, which fell 1.01%. The NOK 70 billion fund has lost 6.41% over the past 12 months, while the average fund in its category is down 6.24%. The iShares fund, which launched in December 2006, has dropped 1.15% over the past three years annualized and lost 0.12% annualized over the past five years.