Is ILB a good ETF?
ILB is the iShares Government Inflation ETF from iShares. It tracks the Bloomberg AusBond Govt Inflation 0+ Yr Index. We classify it under AU and Bonds. With about $1.37 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2012-03-12 (over 14 years ago).
On a total-return basis, ILB has delivered 1.94% a year over 10 years (ranked 93rd of 108 ETFs we track), 0.07% a year over 5 years (ranked 161st of 188 ETFs we track), 2.67% a year over 3 years (ranked 214th of 226 ETFs we track), and 2.22% a year over 1 year (ranked 213th 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 0.18% is reasonable. That's cheaper than the typical 0.32% for similar ETFs. If cost is your priority, VAF (0.1%), IAF (0.1%), and VGB (0.16%) cover similar ground for less. It pays a moderate 1.64% yield.
Over the past 10 years its volatility has been low (annualised standard deviation around 6.34%), meaning a relatively smooth ride.
Portfolio turnover is very low at about 8% a year — the portfolio barely changes from year to year, much like a classic buy-and-hold index fund. Very little of its return is lost to trading or to capital gains being realised early, making it highly tax-efficient.
Strengths
- Low-cost: a 0.18% management fee keeps more of the return in your pocket.
- Low volatility (6.34% over 10 years) for a smoother ride.
Things to watch
- Has lagged most peers over 3 years (214th of 226).
- Cheaper alternatives exist: VAF, IAF, and VGB.
Good to know
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What ILB's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
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.