Is IHCB a good ETF?
IHCB is the iShares Core Global Corporate Bond (AUD Hedged) ETF from iShares. We classify it under Bonds and Intl. With about $341 million in assets it is a solidly established fund.
On a total-return basis, IHCB has delivered 1.44% a year over 10 years (ranked 99th of 108 ETFs we track), -0.69% a year over 5 years (ranked 170th of 188 ETFs we track), 4.15% a year over 3 years (ranked 190th of 226 ETFs we track), and 2.4% a year over 1 year (ranked 207th of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.27% is reasonable. That's cheaper than the typical 0.45% for similar ETFs. It pays a healthy 4.27% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 10 years its volatility has been low (annualised standard deviation around 5.79%), meaning a relatively smooth ride. Its 3-year Sharpe ratio of 0.15 is weak — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- Low-cost: a 0.27% management fee keeps more of the return in your pocket.
- Pays a useful 4.27% income yield.
- Low volatility (5.79% over 10 years) for a smoother ride.
Things to watch
- Has lagged most peers over 10 years (99th of 108).
- Weak risk-adjusted returns (3-year Sharpe ratio 0.15).
What IHCB's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.