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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Private markets access for the masses is coming – get your operation in order

Private markets access for the masses is coming – get your operation in order

The merged entity carries approximately £310bn in private market assets

Ben Hammond
clock 24 February 2026 • 4 min read
Paws for thought: Understanding the power of pent-up demand in China

Paws for thought: Understanding the power of pent-up demand in China

The number of pets in China could rise to 570 million by 2029

Xin-Yao Ng
clock 24 February 2026 • 4 min read
Julius Baer International enters MPS market

Julius Baer International enters MPS market

Gareth Johnson appointed as head of MPS

Isabel Baxter
clock 24 February 2026 • 2 min read