iShares Core Euro Government Bond UCITS ETF (Dist)

EUNH is most frequently paired with global equities like VWCE and IUSQ, alongside precious metals such as 4GLD or GZUR. Equity allocations in these portfolios range from 40 to 60 percent, while gold typically occupies 10 to 20 percent of the total weight. This combination serves to dampen the inherent volatility of stock markets, with EUNH acting as a defensive anchor that provides stability during equity drawdowns, effectively balancing the growth-oriented components of the portfolio.

EuroFolio members primarily utilize EUNH as a tactical stabilizer within multi-asset strategies, with allocations ranging from a minor 3 percent in balanced permanent portfolios to a significant 20 percent in classic Dalio-style allocations. The data suggests that as the weight of EUNH increases, the portfolio's maximum drawdown tends to widen, indicating that while it provides essential fixed-income exposure, it is most effective when integrated into a broader, diversified framework rather than serving as the sole hedge. The high Sharpe ratio of the Resilient Cycle Portfolio demonstrates that keeping EUNH at a moderate 10 percent allocation alongside commodities and equities can yield superior risk-adjusted returns compared to heavier bond-centric approaches.