IE00BH04GL39 | Vanguard EUR Eurozone Government Bond UCITS ETF Accumulating
The ETF's focus on Europe provides investors with diversification benefits through exposure to multiple countries and currencies within the region. The ETF's currency exposure is in euros, which eliminates currency risk for investors based in the Eurozone.
Investment in the ETF comes with a low expense ratio of just 0.07% per annum, which is significantly lower than traditional mutual funds. The ETF also uses a sampling technique to replicate the performance of the underlying index, which reduces costs and enhances returns by focusing on the most relevant index constituents.
With a very large asset under management (AUM) of 1,047m Euro, the Vanguard EUR Eurozone Government Bond UCITS ETF Accumulating has a strong trading liquidity and low bid-ask spreads. Additionally, the ETF has been in existence for over three years, providing investors with a track record of performance.
Investors who are interested in similar ETFs may consider exploring the Bloomberg Euro Aggregate Treasury, iShares Core Euro Government Bond UCITS ETF (Dist), and Vanguard EUR Eurozone Government Bond UCITS ETF Distributing. These ETFs offer varying investment strategies and characteristics that may align with particular investment objectives.
ISIN
IE00BH04GL39
Asset class
Bonds
Trading currency
EUR
Replication
Physical (Sampling)
Distribution policy
Accumulating
Domicile
Ireland
Ticker
VGEA.XETRA
One year low/high
Annuncio pubblicitario
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Learn moreTop holdings
| Euro | 1.54% |
|---|---|
| Bundesrepublik Deutschland Bundesanleihe | 0.97% |
| French Republic Government Bond OAT | 0.63% |
| Bundesschatzanweisungen | 0.76% |
| Italy Buoni Poliennali Del Tesoro | 0.65% |
| Bundesobligation | 0.66% |
| Spain Government Bond | 0.67% |
Geographic exposure
Countries
| Spain | 14.45% |
|---|---|
| Slovenia | 0.42% |
| Slovakia | 0.75% |
| Portugal | 1.99% |
| Netherlands | 4.43% |
| Luxembourg | 0.22% |
| Lithuania | 0.17% |
| Latvia | 0.16% |
| Italy | 21.48% |
| Ireland | 1.67% |
| Greece | 1.11% |
| Germany | 18.73% |
| France | 23.75% |
| Finland | 1.57% |
| Estonia | 0.05% |
| Cyprus | 0.06% |
| Croatia | 0.24% |
| Belgium | 5.13% |
| Austria | 3.64% |
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What is a bond ETF?
A bond ETF is a publicly traded fund that invests in bonds. Bonds are debt securities issued by governments, public entities or companies to finance their business. Bond ETFs are a way for investors to gain exposure to a basket of bonds without having to buy the individual securities directly.
Bond ETFs can be divided into several categories based on the type of bonds they invest in, such as government bonds, corporate bonds, or fixed or floating rate bonds. They can also be classified according to the duration of the bonds, which is the amount of time that passes before the bond reaches its face value. Short-term bond ETFs invest in bonds with short-term maturities, while long-term bond ETFs invest in bonds with long-term maturities.
Bond ETFs are a popular choice for investors seeking income and stability in the value of their portfolio. However, bond ETFs can also be subject to credit, interest rate and liquidity risks. It is important to understand these risks and consider whether bond ETFs are right for your investment portfolio.
What are ETFs?
An ETF (Exchange Traded Fund) is an investment fund that tracks the performance of a market index or a basket of assets. ETFs are publicly traded and can be bought and sold during normal trading hours like common stock.
ETFs have many advantages over other forms of investment, such as the possibility of obtaining portfolio diversification in a simple and convenient way, the low cost of management and the transparency of their activities. Furthermore, ETFs are often used as risk hedging instruments or to track specific markets or sectors.
In summary, ETFs are an easy and convenient way to invest in a variety of assets, such as stocks, bonds, commodities and more, without having to purchase individual investment items.
What is the TER?
The TER (Total Expense Ratio) is a measure of the cost of running a fund or ETF. This is a percentage that represents the portion of the fund's income that is used to cover management and other operating expenses. For example, if a fund has a TER of 2%, this means that 2% of the fund's income will be deducted each year to cover management and other operating expenses.
The TER is calculated by dividing the total amount of fund expenses by the fund's net assets, multiplied by 100. The fund's net assets are the total amount of the fund's assets, less liabilities.
The TER is an important measure to consider when evaluating the different funds available in the market, as it can have a significant impact on a fund's returns over the long term. For example, a fund with a high TER will have more of its returns going towards management fees, which could reduce net returns for investors. Consequently, it is important to compare the TER of different funds to evaluate which might be the most appropriate choice based on your investment needs.
What does the volatility of an ETF represent?
The volatility of an ETF represents the amount of fluctuations or changes that the price of an ETF can experience over a given period of time. In other words, volatility measures the variability of an ETF's price over time.
ETFs that invest in more stable assets, such as government bonds or fixed income securities, tend to have lower volatility than ETFs that invest in riskier assets, such as stocks. However, the volatility of an ETF can also be influenced by other factors, such as the performance of financial markets, general economic conditions and monetary policies.
Volatility can be a useful indicator for investors, as it can give an idea of the potential risk associated with an ETF. However, it's important to note that volatility isn't the only factor to consider when evaluating an ETF. Investors should also consider other factors, such as the investment objective, risk profile and historical performance of the ETF.
How does an accumulation ETF work?
Accumulating ETFs are a type of ETF that do not distribute the dividends and interest earned on the stocks they invest in to investors. Instead, this income is reinvested in the fund, helping to increase the value of the ETF shares. Accumulating ETFs are often used by investors looking to build their wealth over the long term, as reinvesting income can contribute to more growth in the value of the shares over time.
How do accumulation ETFs work in practice? Let's imagine that an accumulation ETF invests in stocks that pay a dividend of $1 for each share held. Instead of paying out these dividends to investors, the fund will reinvest this money by buying new shares of the same ETF. This will increase the number of units owned by the investor and, consequently, also the value of the units.
It is important to note that accumulation ETFs can also generate management fees, like most ETFs. These fees are typically charged to cover costs associated with managing the fund, such as buying and selling securities and paying fund administrators.
Accumulation ETFs may be a good choice for investors who are looking for an easy and affordable way to invest in a broad basket of stocks and who want to use income reinvestment to increase the value of their portfolio over the long term. However, it is important to consider the possible costs associated with accumulation ETFs and whether they are suitable for your investment needs.
What are physically replicated ETFs?
Physically replicating ETFs are a type of ETF that aim to replicate the performance of an index or basket of securities by physically purchasing the same stocks or bonds in the reference index or basket. In this way, physically replicated ETFs offer investors an easy and convenient way to gain exposure to a large basket of stocks without having to buy each individual stock directly.
Physically replicated ETFs are passively managed, which means they do not actively seek to beat the performance of the benchmark index or basket. Instead, their goal is to track the performance of this index or basket as closely as possible. This makes them a popular choice for investors looking for an easy and convenient way to invest in a large basket of stocks without having to closely monitor the financial markets.
Physically replicated ETFs can be divided into several categories based on the type of securities they invest in, such as stocks, bonds or commodities. They can also be classified according to the geographic region or industry in which the securities are issued.
Physically replicated ETFs are a popular choice for investors looking for an affordable way to gain exposure to a large basket of stocks without having to buy each individual stock outright. However, it is important to consider any costs associated with physically replicated ETFs, such as management fees, and whether these are suitable for your investment needs.