ISHARES GLB AGG EUR-H ACC

The Bloomberg Global Aggregate covers investment-grade government and corporate bonds across developed and some emerging markets.

This fund holds roughly 12,000 companies and has been running for about 11 years, with EUR as its base currency.

The fund holds a representative subset rather than every constituent — normal for indices with thousands of members, where buying the smallest names outright would cost more than the tracking error it saves.

Bonds behave differently from equities in ways that matter to the tax you pay as well as the risk you take: in Belgium a bond-heavy fund triggers Reynders capital-gains tax, which an equity fund does not. Duration also means the price falls when rates rise — 2022 showed that is not theoretical.

The ongoing charge of 0.10% is €10.00 per year on a €10,000 holding. It is taken inside the fund, so it never appears on a statement — which is exactly why it goes unnoticed for years at a time.

The more honest figure is the tracking difference: 0.06% — what the fund has actually cost against its index, after securities lending income and withholding-tax treatment. It can be smaller than the headline charge, and occasionally negative.

Comfortably large enough that closure is not a live concern and on-exchange liquidity is good.

DEGIRO charges 0.1% whenever a trade settles in a non-euro currency. Buying the euro line (AGGH NA) on Euronext Amsterdam avoids it entirely. The fund’s own base currency is irrelevant here — only the currency of the line you trade counts.

The same fund is a different proposition in each country, and the differences are large enough to change which share class you should own.

Netherlands

Box 3 taxes an assumed return on your wealth, not what this fund actually pays or gains: 6.00% deemed return taxed at 36%, above a tax-free threshold of €59,357. Accumulating and distributing funds are treated identically, so the choice between them is about reinvestment friction, not tax.

Germany

As an accumulating fund this is taxed through the Vorabpauschale — an advance charge of 70% × the Basiszins (2.25%) × the value, capped at the year's actual gain, with 30% Teilfreistellung on an equity fund. You owe it in years the fund pays you nothing, so keep cash for it.

Belgium

Belgian stock-exchange tax (TOB) applies per side at 1.32% here — the high band, because this is an accumulating fund registered with the FSMA. A distributing share class of the same index is often the cheaper wrapper in Belgium for exactly this reason, which is the opposite of the Dutch conclusion. Because more than 10% of the fund is bonds, Reynders capital-gains tax of 30% also applies to the bond portion of your gain.

Italy

Imposta di bollo takes 0.20% of the holding every year, with no threshold and no exemption. Capital gains are taxed at 26% but only when you sell — an accumulating fund defers that charge for as long as you hold, which compounds in your favour against a distributing equivalent.

Does ISHARES GLB AGG EUR-H ACC pay dividends?

No. ISHARES GLB AGG EUR-H ACC is an accumulating fund: dividends received from its holdings are reinvested inside the fund instead of being paid out, so the value of your units rises rather than cash arriving in your account. You still owe tax on them in some countries — Germany's Vorabpauschale is the clearest example.

How much does ISHARES GLB AGG EUR-H ACC cost to hold?

The ongoing charge is 0.10% per year, which is €10.00 a year on a €10,000 holding, deducted inside the fund rather than billed to you. Its measured tracking difference is 0.06%, which is what the fund has actually cost against its index — a more honest number than the headline charge.

Is ISHARES GLB AGG EUR-H ACC free to buy on DEGIRO?

It is in DEGIRO's Core Selection, so the first purchase of the month in each Core fund carries no transaction fee under their published terms. The €1 handling fee and any currency conversion still apply.

Which listing of ISHARES GLB AGG EUR-H ACC should I buy to avoid the currency fee?

Buy the euro line (AGGH NA) on Euronext Amsterdam. DEGIRO charges 0.1% when a trade settles in a non-euro currency, and the fund's own base currency (EUR) is irrelevant to that — only the currency of the listing you trade matters.

Why is ISHARES GLB AGG EUR-H ACC domiciled in Ireland?

Ireland's tax treaty with the United States reduces withholding tax on US dividends to 15% for a qualifying fund, against 30% without it. Since US companies are the largest block in most global and developed indices, that treaty rate is worth more to a European investor than a domestic domicile would be — it is the single biggest reason nearly every UCITS ETF sold in Europe is Irish.