ETFs investing in euro government bonds have attracted EUR 4.2 billion in inflows, making them the best bond category of the year as of June 2025. Four out of eight top-performing funds are from iShares. Euro government bond funds have returned 2.50% over the past year, with stable year-to-date performance over three years and a 2.13% loss over five years compared to the Morningstar Eurozone Core Bond index. Euro government bond ETFs invest in government or agency securities denominated in euros or hedged to eliminate exchange rate risk. The best-performing euro government bond ETFs include Xtrackers II iBoxx Eurozone Government Bond Yield Plus UCITS ETF, Amundi Euro Government Bond 3-5Y UCITS ETF, Xtrackers II Eurozone Government Bond 5-7 UCITS ETF, and iShares VII PLC – iShares € Govt Bond 3-7yr UCITS ETF EUR (Acc).

Read more at Morningstar: The Best-Performing euro Government Bond ETFs