iShares China CNY Bond UCITS ETF

What this fund is

iShares China CNY Bond UCITS ETF is an exchange-traded fund (ETF) from iShares, traded under the ticker CYGB (ISIN IE00BMZ17Y47). It lets you buy a basket of holdings in a single trade, spreading your money across them rather than one company. In plain terms it is about lending to governments and companies in return for regular interest, which tends to be steadier than shares but grows more slowly, spread across its target market. Its largest holdings include CHINA PEOPLES REPUBLIC OF (GOVERNM, CHINA PEOPLES REPUBLIC OF (GOVERNM and CHINA PEOPLES REPUBLIC OF (GOVERNM. With about 115 holdings (the ten largest ≈ 40.7%), your money is diversified rather than concentrated in a handful of names.

Its biggest country exposures are ~99.9% China, ~0% United States and ~0% European Union. Its heaviest sectors are ~99.9% Government and ~0.1% Other. Funds like this are often used as the steadier, lower-swing part of a portfolio — the ballast that cushions the ups and downs of shares. Its ongoing charge (TER) is 0.4% a year — about €40 a year on a €10,000 holding, taken automatically from the fund. It is a distributing share class — dividends are paid to you as cash rather than reinvested, and over the last year it paid out roughly 1.7% (its trailing yield).

It holds the underlying investments directly (physical replication); it is domiciled in Ireland and UCITS-regulated, a European standard built to protect everyday investors and trades in GBP. Its price has swung about 2.5% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2021. As with any investment, its value can go down as well as up, and past performance is not a guide to future results. (Fund data sourced from iShares.)