Medium-term US Treasury bonds
This fund lends to the US government for roughly seven to ten years. It pays more than short-term cash funds but its price moves up and down as interest rates change. It is a classic core holding for steadier income.
Returns shown in USD (your base currency). Past performance is not a reliable guide to future results.
- Backed by the US government
- Steadier income than cash funds
- Often rises when stocks fall
- Price drops when rates rise
- Modest yield in low-rate times
- US dollar currency risk for SGD investors
About this fund
The fund tracks the ICE US Treasury 7-10 Year index, holding US Treasury notes with seven to ten years left to maturity. This medium duration means the price is more sensitive to interest-rate moves than short-term bills but less jumpy than very long bonds. It is the benchmark intermediate Treasury holding for many portfolios.
Available on Interactive Brokers
Low-cost access to Medium-term US Treasury bonds and 10,000+ funds worldwide.
Frequently asked questions
Is CBU0.L accumulating or distributing?
iShares $ Treasury Bond 7-10yr UCITS ETF USD (Acc) (CBU0.L) is an accumulating ETF, so its dividends are reinvested automatically inside the fund instead of paid out as cash. The value compounds in the share price, which keeps things simple since the dividends are reinvested for you instead of arriving as cash you would otherwise have to reinvest yourself.
What is the annual fee (TER) for CBU0.L?
CBU0.L has a total expense ratio (TER) of 0.07% per year. On a $10,000 holding that is roughly $7 a year, charged inside the fund rather than billed to you separately. A lower fee leaves more of the return compounding for you over time.
Can I buy CBU0.L on Interactive Brokers?
Yes. CBU0.L trades on LSE, USD and is available to investors worldwide through Interactive Brokers (IBKR). IBKR is the most popular way to buy UCITS ETFs because of its low FX conversion cost (around 0.03%) and low trading commissions.
What does CBU0.L invest in?
iShares $ Treasury Bond 7-10yr UCITS ETF USD (Acc) (CBU0.L) tracks the ICE US Treasury 7-10 Year Bond Index. This fund lends to the US government for roughly seven to ten years. You buy one fund and get the whole basket in a single trade.
Is CBU0.L a UCITS ETF, and where is it domiciled?
Yes, CBU0.L is a UCITS ETF domiciled in Ireland. For non-US investors, Irish-domiciled UCITS ETFs are usually preferred over US-domiciled ones: US dividend withholding tax is 15% under the tax treaty (versus 30% on US-domiciled funds for many non-US investors), and the holdings sit outside US estate tax.
How risky is CBU0.L?
On the TickerCompare 1 to 5 scale, CBU0.L is rated low risk (2/5), based on how much its price has moved historically. Higher-risk funds can fall further in a downturn, so match the choice to your time horizon and how much volatility you can stomach.