DWS has listed the Xtrackers II Global Government Bond 0-5 UCITS ETF 2D – GBP Hedged on the London Stock Exchange.
Article created by the editorial staff of ETFWorld.co.uk
Simon Klein, Global Head of Xtrackers Sales at DWS
DWS brings a GBP-hedged, short-dated global government bond ETF with a 0.11% TER to the LSE Main Market
The ETF began trading on 11 November 2026 under the ticker XHT5. It tracks the Bloomberg Global Treasury 0-5 Yr Index, which covers government bonds with less than five years to maturity. It has a total expense ratio (TER) of 0.11%. The share class is hedged to sterling and distributes income, giving UK investors a short-dated government bond ETF without exposure to foreign exchange movements.
A new Xtrackers II sub-fund
The ETF is a sub-fund of Xtrackers II, the Luxembourg-domiciled UCITS umbrella managed by DWS Investment S.A. According to DWS, both the sub-fund and the share class were launched on 4 November 2026. The London listing followed one week later.
The fund is registered for distribution in the United Kingdom, Ireland and Luxembourg. DWS reports that it is eligible for ISAs and SIPPs and has UK reporting fund status.
The index: Bloomberg Global Treasury 0-5 Yr
The Bloomberg Global Treasury 0-5 Yr Index (USD) measures investment grade sovereign debt issued publicly in each issuer’s own currency. Only bonds with a remaining maturity of up to, but not including, five years are included.
The fund uses physical replication with optimised sampling. It holds a representative selection of index bonds rather than every constituent. As of 9 November 2026, the portfolio contained 383 holdings.
The largest positions listed by DWS included US Treasury notes, UK gilts, and French and Chinese government bonds. The largest single position was a US Treasury note with a weight of 0.555%.
Short-dated government bond ETF: portfolio characteristics
DWS published the following portfolio data as of 9 November 2026:
Effective duration: 2.17
Modified duration: 2.16
Yield to worst: 3.49%
Average coupon: 4.55%
The short duration means the fund’s value is less sensitive to changes in interest rates than a fund covering the whole yield curve. The yield figures relate to the portfolio and are not a forecast of the fund’s return.
Costs and share class structure
The 0.11% all-in fee consists of a 0.03% management company fee and a 0.08% fixed fee. The fixed fee covers administrative costs, including custody, registrar and listing agent fees and the Luxembourg subscription tax.
The share class is in GBP and is currency hedged to sterling. The index is calculated in US dollars. Income is distributed to shareholders. DWS states that the fund may engage in securities lending.
The depositary and administrator is State Street Bank International GmbH, Luxembourg Branch.
London Stock Exchange listing details
| Product Name | Xtrackers II Global Government Bond 0-5 UCITS ETF 2D – GBP Hedged |
| ISIN | LU3363375000 |
| SEDOL | BT3KN77 |
| Currency | GBP |
| Management Fee | 0.11% |
| Benchmark | Bloomberg Global Treasury 0-5 Yr Index (USD) |
On the exchange, settlement takes place through the ETFS – Euroclear Bank settlement service.
Comparison with the broad Xtrackers global government bond ETF
Xtrackers II already lists a GBP-hedged global government bond ETF in London. The Xtrackers II Global Government Bond UCITS ETF 2D GBP Hedged (ticker XGSG) tracks the FTSE World Government Bond Index – Developed Markets. It covers the whole yield curve, with a minimum maturity of one year.
According to DWS, XGSG has an all-in fee of 0.25% and an effective duration of 6.40 years. The new fund has a fee of 0.11% and an effective duration of 2.17.
The two ETFs serve different purposes. They track different indices from different providers. XGSG covers developed markets only, while the new fund’s holdings also include Chinese government bonds.
Conclusions
The Xtrackers II Global Government Bond 0-5 UCITS ETF 2D – GBP Hedged (XHT5) is now trading on the London Stock Exchange. It offers sterling-hedged exposure to short-dated government bonds at an annual cost of 0.11%, with an effective duration of 2.17.
Source: ETFWorld.co.uk
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