Is IUSG a good ETF?
IUSG is the iShares U.S. Treasury Bond (AUD Hedged) ETF from iShares. We classify it under Bonds and Intl. With about $29 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, IUSG has delivered 2.54% a year over 3 years (ranked 222nd of 236 ETFs we track) and -1.82% a year over 1 year (ranked 250th 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 0.17% is reasonable. That's cheaper than the typical 0.45% for similar ETFs. It pays a high 6.03% 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 3 years its volatility has been low (annualised standard deviation around 4.92%), meaning a relatively smooth ride.
Strengths
- Low-cost: a 0.17% management fee keeps more of the return in your pocket.
- High 6.03% income yield — good for investors who want regular cash flow.
- Low volatility (4.92% over 3 years) for a smoother ride.
Things to watch
- Has lagged most peers over 3 years (222nd of 236).
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
What IUSG'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.