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 $338 million in assets it is a solidly established fund.
On a total-return basis, IHCB has delivered 1.22% a year over 10 years (ranked 102nd of 110 ETFs we track), -0.78% a year over 5 years (ranked 170th of 189 ETFs we track), 4.34% a year over 3 years (ranked 195th of 236 ETFs we track), and -1.22% a year over 1 year (ranked 236th of 318 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 high 6.68% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. 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 5.83%), meaning a relatively smooth ride. Its 3-year Sharpe ratio of 0.1 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.
- High 6.68% income yield — good for investors who want regular cash flow.
- Low volatility (5.83% over 10 years) for a smoother ride.
Things to watch
- Has lagged most peers over 10 years (102nd of 110).
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
- Weak risk-adjusted returns (3-year Sharpe ratio 0.1).
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.