L&G UK Gilt 0 – 5 Year

ETF description

This ETF focuses on investing in UK government bonds, also known as gilts, with maturities between 0 and 5 years. These bonds are considered relatively low‑risk because they are backed by the UK government, making them appealing for conservative investors seeking stability. The short‑term nature of the bonds means they are less sensitive to interest rate changes compared to longer‑term bonds, which can reduce volatility in the fund’s price.

This ETF may appeal to investors looking for a safe place to park their capital while earning regular interest payments. It could be particularly suited to those who prioritize capital preservation over high returns or who need an investment with lower risk for short‑term financial goals. Additionally, the fund could be an option for investors seeking to balance a portfolio with a conservative, bond‑focused allocation to manage overall risk.

Issuer details

Legal & General Investment Management (LGIM) is one of Europe’s largest asset managers and a subsidiary of Legal & General Group plc. With over £1.5 trillion in assets under management as of June 2024. Established in 1836, LGIM has a long history and is known for its strong focus on index investing, providing investors with cost‑effective and diversified exposure to various markets. LGIM is also recognized for its innovative ESG integration across its investment strategies and expertise in liability‑driven investment (LDI) solutions. Notable ETFs include the L&G Global Technology Leaders UCITS ETF and the L&G Cyber Security UCITS ETF, reflecting LGIM’s commitment to providing access to innovative and thematic investment themes. LGIM offers a range of investment solutions and covers various market segments.

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.