iShares UK Gilts 0 – 5yr

ETF description

This ETF focuses on investing in UK government bonds, known as gilts, with maturities of up to five years. Gilts are considered lower‑risk investments because they are backed by the UK government. By targeting bonds with shorter maturities, the fund aims to reduce exposure to interest rate fluctuations, offering greater stability in price compared to longer‑term bonds. The ETF provides income through regular interest payments from the bonds held in the portfolio.

This ETF may appeal to conservative investors who are looking for a low‑risk option within their portfolio, particularly those who prioritise capital preservation over high returns. It could be suitable for those seeking a relatively stable income stream while limiting sensitivity to interest rate changes.

Issuer details

iShares ETFs are issued and managed by BlackRock, the world’s largest asset management company.

With 800+ products globally and over $2trn in assets (as at June 2024), iShares ETFs are a flexible, low‑cost way for investors to gain exposure to various market segments, including fixed income, emerging markets and broad‑based indexes.

Index details

The UK Gilts 0 – 5 Years index provides investors with targeted exposure to short‑term UK government bonds, focusing on maturities between 0 and 5 years. By investing in secure and low‑risk sovereign debt, the index aims to capture the performance of British gilts with minimal interest rate sensitivity.