Long Duration and Inflation Protection: Reviewing ASX:ALTB, ASX:ILB and ASX:XGOV

Sonal Goyal

10 November 2026 09:16 PM AEDT

Long Duration and Inflation Protection: Reviewing ASX:ALTB, ASX:ILB and ASX:XGOV

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Key Highlights

iShares 15+ Year Australian Government Bond ETF (ASX:ALTB) covers the longest maturities of the three, with a listed Yield of 3.26%.
iShares Government Inflation ETF (ASX:ILB) is the only inflation-linked fund in this group, with a listed yield of 1.59%.
VanEck 10+ Year Australian Government Bond ETF (ASX:XGOV) has a listed yield of 4.26% and a fee of 0.22%.
ASX:ALTB and ASX:XGOV have high concentration in their top holdings, while ASX:ILB holds 12 issues.

Three Australian government bond ETFs target longer-dated or inflation-linked exposure: iShares 15+ Year Australian Government Bond ETF (ASX:ALTB), iShares Government Inflation ETF (ASX:ILB) and VanEck 10+ Year Australian Government Bond ETF (ASX:XGOV). These products are more sensitive to interest rates than shorter bond funds, and ASX:ILB adds a link to inflation. This article compares their holdings, costs and yields.

Measure	ASX:ALTB	ASX:ILB	ASX:XGOV
Listed price	$94.29	$127.61	$49.69
Fund size	Not shown	Not shown	Not shown
Management fee	0.15%	0.18%	0.22%
Listed annual yield	3.26%	1.59%	4.26%
Holdings	18	12	41
Top ten holdings	95.41%	Nearly all	68.48%

Maturity and inflation linkage

ASX:ALTB tracks Government Bonds with more than 15 years to maturity. ASX:XGOV tracks government bonds with 10 to 20 years to maturity. ASX:ILB tracks inflation-linked government bonds, whose payments are adjusted for the Consumer Price Index, so its income and principal respond to inflation rather than to fixed coupon payments.

The result is that ASX:ALTB and ASX:XGOV are primarily exposed to nominal Interest Rate moves, while ASX:ILB is exposed to real rates and inflation expectations.

Costs and income

The fee for ASX:ALTB is 0.15%, lower than ASX:ILB at 0.18% and ASX:XGOV at 0.22%. Yields differ sharply: ASX:XGOV shows 4.26%, ASX:ALTB 3.26% and ASX:ILB 1.59%. The low yield on ASX:ILB reflects that much of its return comes through the inflation adjustment to principal rather than through coupons.

Because all three funds hold government bonds, Credit risk is limited, and the main drivers of income are rate levels and inflation.

Risks to weigh

The long maturities in ASX:ALTB and ASX:XGOV make them sensitive to interest rates, and their unit prices can move substantially when yields change. ASX:ILB can lose value when real yields rise, even if inflation is high, and its yield can be low or negative in real terms during some periods.

All three funds have concentrated holdings in a small number of issues, which means changes in those securities can affect the funds noticeably. ASX:ALTB's top ten make up 95.41% of the fund, the highest concentration in the group.

Final Word

The three funds serve different purposes. ASX:ALTB and ASX:XGOV give longer-dated nominal government exposure, with ASX:XGOV offering the higher yield, while ASX:ILB provides inflation linkage at a lower income level. Rate direction and inflation expectations shape the outcome for each.

FAQs

Q: Which fund is inflation-linked?

A: ASX:ILB.

Q: Which fund has the highest listed yield?

A: ASX:XGOV, at 4.26%.

Q: Which fund has the longest maturity focus?

A: ASX:ALTB, covering bonds with more than 15 years to maturity.

Q: Which fund has the lowest fee?

A: ASX:ALTB, at 0.15%.

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