iShares Treasury ETF (IGB) — Review & Analysis

IGB holds almost exclusively Australian Treasury bonds — 99.98% of the portfolio is direct Commonwealth Government Treasury exposure, with the remaining 0.02% in cash or derivatives. The fund sits in the top 10% cheapest fees on the ASX for fixed income ETFs as at May 2026, making IGB one of the lowest-cost ways to access pure sovereign credit exposure. Compare IGB across the fixed income cohort on our fixed income ETF page or use the Compare ETFs tool to evaluate against IAF and VAF.

The structural pitch is purity. Where IAF (iShares Core Composite Bond) and VAF (Vanguard equivalent) hold a mix of government and corporate credit, IGB strips out credit risk entirely by holding only Australian Treasury bonds. The result is the cleanest, lowest-credit-risk fixed income exposure available — making IGB suitable for investors who want pure duration and rate exposure rather than credit spread compensation.

The closest peers are ALTB (15+ year duration, 0.15%) and the broader composite bond funds. IGB sits between them — broader duration exposure than ALTB but cleaner credit positioning than IAF. For SMSF trustees building defensive sleeves where capital preservation is paramount, IGB is the natural choice.

IGB is unhedged (irrelevant for AUD Treasuries). Unit price moves with interest rate changes — when yields fall, IGB rises; when yields rise, IGB falls. The fund pays regular distributions reflecting Treasury coupon income. Our bond and fixed income ETFs guide covers IGB alongside the full bond cohort.