EXHB
iShares EUR Govt Bond 3-7yr UCITS ETF EUR (Dist)
Published by Radif Partners · Updated
Overview
iShares EUR Govt Bond 3-7yr UCITS ETF EUR (Dist) (EXHB) tracks the Bloomberg Euro Treasury 3-7yr index and holds its constituents directly, a physical replication managed by iShares. Dividends are paid out to holders rather than reinvested, so EXHB suits investors seeking regular income. The fund is domiciled in DE, which determines the withholding tax treatment applied to its dividends. Annual charges come to 0.15% of assets, and the fund holds 179M under management. Over five years the fund returned -0.6% a year on average, against 1.0% over three years. It is not eligible for the French PEA, but can be held in a securities account, a UK ISA or a German Depot. Its risk level is rated low. Launched on 2002-04-22, the fund is denominated in EUR and has 24 years of track record. It is a UCITS fund, so it follows the European framework on diversification, liquidity and asset segregation. Because EXHB distributes, every payment is taxable in the year it is received, against the dividend allowance in a general account, while it stays sheltered inside an ISA or a SIPP. Domicile in DE sets the withholding the fund itself suffers on the dividends it receives, a cost absent from the stated fee but present in the return.
Ongoing charges of 0.15% place this fund 47th of 79 comparable funds, whose median is 0.10%. On £10,000 that costs about 15 a year and 150 over ten years at a constant amount, deducted daily and never visible on a statement: it shows up in the gap between the fund's return and its index's. At this level, neither low enough to be an argument nor high enough to be an obstacle, the decision rests elsewhere: on the index tracked, on the distribution policy, and on what your broker charges to buy.
Replication is physical: the fund actually holds the constituents of Bloomberg Euro Treasury 3-7yr, which makes its contents verifiable line by line in the issuer's report. Two points deserve attention. Securities lending first, practised by most physical funds to reduce costs: it earns a few hundredths of a point and creates an exposure to the borrower, covered by collateral, with the annual report stating the proportion lent. Rebalancing second: every change in the index's composition forces the fund to buy and sell, and those internal costs are not in the 0.15% headline. That is why two funds at the same price do not track their index with the same fidelity.
The fund is domiciled in DE, outside the two usual homes for European listed funds. Three checks come before buying: whether your broker lists it, since a fund outside the usual venues is not always dealable from a European account; what withholding the fund suffers on dividends it receives, which follows DE's treaties rather than your country's; and how your own tax authority treats it, an answer that can differ from the treatment of an Irish fund tracking the same index.
Income is distributed: the fund pays out the dividends it receives, usually one to four times a year. For a holder living off the portfolio that is what is wanted, since the income arrives without selling. For someone still accumulating it is a tax disadvantage in a taxable account: each payment is taxed in the year received, so the amount reinvested is reduced before it starts working again. Reinvesting by hand also costs a dealing commission each time and often leaves cash idle for want of the price of a whole unit. An accumulating class on the same index, where one exists, settles the question.
With 179 million in assets and 24 years of history, this fund has the size and the record that make closure unlikely and the spread narrow. Three checks remain, once a year, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of Bloomberg Euro Treasury 3-7yr, which can change its selection or weighting rules without the fund's name moving, in which case what you hold has changed with nothing to announce it.
Bloomberg Euro Treasury 3-7yr tracks government debt, and the price driver is not a company's profit but the interest rate: when rates rise, the value of bonds already issued falls, the more so the further away their maturity. What matters on this fund is therefore not past return but duration, which says how much the value moves per point of rate, and yield to maturity, which says what the portfolio earns if nothing is sold. Default risk is secondary here; interest rate risk is the substance.
Over one year the fund shows -1.4% and over five years -0.6% annualised, two figures close together, which is the most ordinary and least informative configuration: it does not say the fund is steady, only that the chosen start and end points resemble each other. Comparing these figures with another fund means something only if the index is the same; otherwise it is an index comparison dressed as a fund comparison.
0.15%
179M
179M EURLow
4,398
Physical
Distributing
EUR
DE
Bloomberg Euro Treasury 3-7yr
iShares
2002-04-22 (24 years)
Contextual Analysis
Fund Size
With 179M in assets, this is a mid-sized fund, decent liquidity for most investors.
Fee Positioning
A TER of 0.15% is among the lowest on the market, excellent value.
Track Record
Launched in 2002-04-22, this fund has 24 years of history, long and reliable track record.
Risk Profile
Low risk, suitable for cautious investors or short-term goals.
Performance
Returns Summary
| Period | Ann. Return | Cumulative |
|---|---|---|
| 1 Month (est.) | – | -0.1% |
| 3 Months (est.) | – | -0.3% |
| 6 Months (est.) | – | -0.7% |
| YTD (est.) | – | -0.6% |
| 1 Year | -1.4% | -1.4% |
| 3 Years | +1.0% | +2.9% |
| 5 Years | -0.6% | -3.1% |
| Since inception (24y) | -0.3% | -7.8% |
Key Facts
Fund Profile
Themes & Zones
Holdings
Risk
How to Buy This ETF
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About this ETF
The iShares EUR Govt Bond 3-7yr UCITS ETF EUR (Dist) tracks the Bloomberg Euro Treasury 3-7yr index. It is managed by iShares using physical replication and follows a distributing distribution policy. The fund is denominated in EUR and domiciled in DE. It has a total expense ratio (TER) of 0.15%.
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Frequently asked questions
What do EXHB's 0.15% charges actually cost?
They are taken from the fund's value continuously and never billed separately: on £1,000 invested that is about £1.50 a year and roughly £15 over ten years at a constant amount. That is the only cost of the fund itself. Your broker's commission and the spread between buying and selling price come on top, and they weigh most on small frequent purchases.
What should you re-check on EXHB once a year?
Three things, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of Bloomberg Euro Treasury 3-7yr, which can change its selection or weighting rules without the fund's name moving: in that case what you hold has changed with nothing to announce it.
Does EXHB lend out the securities it holds?
Probably in part: most physical funds lend securities to reduce their costs, and iShares publishes the proportion in the annual report. Lending income is worth a few hundredths of a point, shared between the fund and the issuer. The risk is the borrower's, covered by collateral worth more than the amount lent, and it appears in the prospectus rather than in the stated fee.
Does EXHB pay dividends?
Yes: the fund distributes and pays out the dividends it receives, on a calendar set by iShares. The payment is taxable in the year you receive it in most accounts, even if reinvested at once, and reinvesting by hand costs a commission each time. An accumulating class on the same index avoids that friction for anyone who does not need the income.
What happens if EXHB closes?
At 179 million in assets, this fund is small enough for a merger or a wind-up to be a real prospect. On liquidation the holdings are sold and the proceeds paid to you on a date you did not choose, so with a gain that may be taxable at the wrong moment. On a merger your units move to another fund whose index is not quite the one you picked.
This ranking is for informational purposes only and does not constitute a recommendation to buy or sell any security. Displayed performance is simulated.