The FTSE World Government Bond Index (WGBI) is the recognised leading benchmark for global treasury exposure, widely followed by major fund managers and institutional investors seeking diversified sovereign debt allocations. It measures the performance of fixed-rate, local currency, investment-grade government bonds from over 20 countries, denominated in multiple currencies, and offers more than 40 years of historical data for robust trend analysis.
The WGBI provides comprehensive coverage of the global sovereign fixed income market, making it a cornerstone for portfolio construction and risk management. Its modular design enables investors to tailor exposure through sub-indices by country, currency, maturity, and credit rating, supporting precise benchmarking and strategic allocation decisions.
Beyond its role as a benchmark, the FTSE WGBI underpins a range of innovative investment solutions. These include sustainable fixed income strategies and smart beta overlays, allowing investors to integrate ESG objectives or factor-based approaches without sacrificing global sovereign exposure. This flexibility positions the WGBI as a critical tool for meeting evolving portfolio mandates and capturing long-term opportunities in government bond markets.
Below are examples of the WGBI ecosystem:
The FTSE Ecosystem
| FTSE World Government Bond Index (FTSE WGBI) | Measures the performance of fixed-rate, local currency, investment-grade sovereign bonds from over 20 countries, denominated in a variety of currencies. |
| FTSE World Government Bond 0-1 Year Index | Tracks ‘roll-down’ bonds from the FTSE WGBI (bonds with less than one year remaining until maturity), with a minimum maturity of one month. |
| FTSE World Government 0-1 Year Index | Combines the FTSE World Government Bond 0-1 Year Index with the associated Treasury Bill indices from the FTSE Global Treasury Bill 0-1 Year Index Series |
| FTSE World Government Bond 0+ Years Index | Combines the FTSE WGBI with the FTSE World Government Bond 0-1 Year Index. |
| FTSE Climate Risk-Adjusted World Government Bond Index | Adjusts WGBI weights according to relative climate risk performance, assessed by three ‘pillars’ (physical risk, transition risk and resilience). |
| FTSE Climate CaRD WGBI | Provides targeted exposure to the sovereign bonds in the FTSE Climate WGBI, using weights that aim to maximise the index’s yield return (Carry) and its Roll Down return. |
| FTSE Nomura Climate CaRD WGBI | Maximises the carry and roll down return of the Climate WGBI, while providing flexibility on optimising factor variants. |
| FTSE ESG WGBI | Incorporates a tilting methodology that adjusts index weights according to each country’s relative Environmental, Social and Governance (ESG) performance |
| FTSE Debt Capacity WGBI | Focuses on countries with lower debt issuance relative to their GDP and stronger debt servicing capabilities. |
| FTSE MPF WGBI | Designed to help users meet the regulatory requirements of Hong Kong Mandatory Provident Fund (MPF) schemes. |
| FTSE WGBI Japanese Investment Trust | Designed to serve as a benchmark for performance evaluation by Japanese investment trusts. The calculation methodology is based on the evaluation standards of the Investment Trusts Association of Japan. |
A WGBI Timeline
| 1986 | Launch of WGBI with start date 12/84 |
|---|---|
Markets at launch: US, Japan, UK, West Germany, France, Canada, Netherlands, Australia, Switzerland |
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| 1989 | Denmark added to WGBI |
| 1992 | Belgium, Italy, Spain and Sweden added to WGBI, Switzerland excluded |
| 1993 | Austria added to WGBI |
| 1996 | Switzerland and Finland added to WGBI |
| 1997 | Ireland added to WGBI |
| 1998 | Portugal added to WGBI |
| 2000 | Greece added to WGBI |
| 2003 | Poland and Norway added to WGBI |
| 2005 | Singapore added to WGBI |
| 2007 | Malaysia added to WGBI |
| 2010 | Mexico added to WGBI |
Greece removed from WGBI after credit downgrade |
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2012 |
South Africa added to WGBI |
Portugal removed from WGBI after credit downgrade |
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| 2018 | Switzerland removed from WGBI under market size criteria |
| 2020 | Israel added to WGBI |
South Africa removed from WGBI after credit downgrade |
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| 2021 | Chinese government bonds added to WGBI with phased inclusion (2021-24) |
| 2022 | New Zealand added to WGBI |
| 2024 | Portugal rejoined WGBI |
| 2025 | South Korean government bonds added to WGBI |
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