ERNS

iShares GBP Ultrashort Bond UCITS ETF (LSE: ERNS) aims to track the Markit iBoxx GBP Liquid Investment Grade Ultrashort Index and provides exposure to short‑dated, investment‑grade GBP‑denominated bonds. The fund physically holds a diversified portfolio of short‑maturity corporate, supranational and bank debt, typically with a weighted average maturity around 0.9 years and a weighted average yield to maturity near 4.3% as of early April 2026. Its total expense ratio is 0.09% and it distributes income quarterly. Returns are driven mainly by short‑term UK interest rates and credit spread movements across investment‑grade issuers; income and modest price changes reflect coupon receipts and low duration sensitivity. The ETF is commonly used as a cash alternative or short‑term core bond sleeve to reduce portfolio volatility, while remaining exposed to issuer credit risk and potential liquidity stress in adverse market conditions.

Top holdings:

• KFW: 4.01%
• LLOYDS BANK PLC: 3.95%
• SANTANDER UK PLC: 3.91%
• EUROPEAN INVESTMENT BANK: 3.87%
• BANK OF NOVA SCOTIA: 3.26%
• ROYAL BANK OF CANADA: 3.07%
• BANK OF MONTREAL: 2.93%
• CANADIAN IMPERIAL BANK OF COMMERCE: 2.57%