The Best Eurozone Government Bond ETFs

From Morningstar: 2025-03-19 03:41:00

Exchange-traded funds offer easy access to eurozone sovereign debt, with some highly rated by Morningstar analysts. Yields on eurozone bonds are rising due to expectations of increased government spending post-German fiscal changes. Finding top ETFs for eurozone bonds, Morningstar screened 67 ETFs, highlighting those with Gold or Silver Medalist Ratings.

Germany’s fiscal shift has caused a surge in eurozone bond yields, with 10-year German Bunds hitting nearly 3%. This rise of 52 basis points in a month has also impacted French and Italian debt yields. Investor interest in eurozone debt ETFs is growing as yields increase sharply post-German fiscal changes.

Morningstar has identified five top-rated Eurozone Government Bond ETFs, all with Gold Medalist Ratings. These ETFs are passively managed and track various Eurozone bond indices, offering investors exposure to eurozone sovereign debt with strong potential for long-term outperformance.

Key Eurozone Bond ETFs include iShares Core € Govt Bond UCITS ETF (SEGA), SPDR Bloomberg Euro Government Bond UCITS ETF (GOVY), Vanguard EUR Eurozone Government Bond UCITS ETF (VETY), Amundi IS Prime Euro Govies UCITS ETF (PRAR), and Xtrackers II Eurozone Government Bond UCITS ETF 1C (XGLE). Each fund has different strategies and performance metrics, providing investors with a range of options for exposure to eurozone sovereign debt. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling by 500 points. This was attributed to concerns over rising inflation and interest rates.

2. A new study found that 70% of Americans are worried about the impact of climate change on future generations. The study also revealed that only 30% of respondents believe the government is doing enough to address the issue.

3. The CDC reported a record number of COVID-19 cases in the United States, with over 100,000 new infections reported in a single day. This surge has raised concerns about the effectiveness of vaccination efforts and the need for continued vigilance.

4. Tesla announced plans to build a new Gigafactory in Texas, which is expected to create thousands of jobs in the area. The factory will focus on producing batteries for electric vehicles and is part of the company’s efforts to expand its manufacturing capabilities.

5. The latest unemployment numbers show a slight decrease in jobless claims, with 300,000 new claims filed last week. While this is a positive sign for the economy, experts caution that the labor market remains volatile and unpredictable.



Read more at Morningstar: The Best Eurozone Government Bond ETFs