Government Bonds: Putting Safety First

Diversifying your risk by trusting in governments.

Tried and Trusted

Are you looking to potentially cushion your investments against unforeseen risks? If so, you might want to consider European government bonds. The likelihood of a government defaulting on its loan payments is very low, so bonds are viewed as the most solid investments.

Fixed income has been a part of institutional portfolios for their diversifying properties over long periods.

Cushion against losses

Source: VanEck.

Governments everywhere borrow money for public spending. In fact, the bond market is the world’s largest financial market and government bonds are the largest part of it.1 Governments normally commit to reward investors by paying a coupon, or interest, on the bond, as well as to repay it at maturity after a set number of years.

So, by investing in government bonds you can contribute to countries being able to finance their public services – from transport, to healthcare, to education.

1Source: ICMA.

Why VanEck’s ETFs?

Quite candidly, our government bond ETFs deliver a blend of low cost and high quality.

ETFs in Two Flavors

Our government bond ETFs come in two variants – one tracks an index that only includes the currently best-rated bonds across Europe (with AAA and AA ratings), the other one tracks an index that includes also less safer options and is designed to provide a little more yield.

This ETF only invests in the safest euro government bonds. Expert credit rating agencies have awarded them the highest rating of AAA or AA. They currently include the bonds issued by: Germany, France, Belgium, Netherlands and Austria.

Risk: Investors should consider risks before investing. See dedicated risk factors section on this website.

VanEck Vectors iBoxx EUR Sovereign Capped AAA-AA 1-5 UCITS ETF

ISIN: NL0010273801

  • Only AAA and AA rated bonds
  • Best-rated European issuers: Germany, Netherlands, Austria, France and Belgium
  • Time to maturity 1 to 5 years

Risk indication: 2 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

VanEck Vectors iBoxx EUR Sovereign Diversified 1-10 UCITS ETF

ISIN: NL0009690254

  • 25 most liquid government bonds in the Eurozone
  • Investment grade rating
  • Time to maturity between 1 to 10 years

Risk indication: 3 out of 7

Lower risk: Typically lower reward

Higher risk: Typically higher reward

Main Risk Factors


Changes in interest rates have a significant influence on the results of fixed-income securities issued by companies. Potential or actual downgrades in the credit rating can increase the assumed risk level.

For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on

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