Peter Doherty: Sterling bond ETFs? Quit whilst you're behind

Underperformance ‘by design’

clock • 5 min read

Regardless of the investment case for equity exchange-traded funds, Peter Doherty argues there are three good reasons why investors should sell any sterling bond ETFs they own - and never buy one again

Exchange-traded funds (ETFs) have been one of the big investment success stories of recent years. Many financial advisers recommend holding a range of ETFs within client portfolios. But let's take a closer look specifically at the bond ETF investment scenario. Two widely promoted sterling bond ETFs are the £1.4bn iShares £ Corporate Bond 0-5 years and the £1.5bn iShares £ Corporate Bond. The 2017 performance of these two funds is set out below and is compared - reasonably enough - with independent data from the IA Strategic Bond sector: Description Ranking (85 funds) 201...

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