"Vanguard U.K. Gilt UCITS ETF" is an exchange-traded investment fund (ETF). It refers to the Bloomberg Sterling Gilt Float Adjusted Index. This index reflects the development of stocks . The ETF replicates its index using physical replication with sampling, so it contains the most important securities of its reference index. The ETF's earnings (dividends) are distributed to the investors. The fund company Vanguard claims a total expense ratio (TER) of 0.07% per year. The yearly average divergence from the index performance (Tracking Difference) since 2013 was 0.09% per year. Therefore, the ETF was slightly more expensive than the TER suggests.