Description

The Invesco Euro Government Bond UCITS ETF Dist aims to replicate the total return performance of the Bloomberg Euro Treasury Majors Bond Index, net of expenses. This fund distributes income on a quarterly basis. The benchmark index measures the performance of fixed-rate government debt securities denominated in Euros. For a country to be initially included in the index, its Euro-denominated debt issuance must total at least EUR 50 billion; if this figure falls below EUR 40 billion, the country will be removed. The list of eligible countries is reviewed annually. To qualify for entry into the index, securities must be denominated in EUR, hold an investment-grade rating (Baa3/BBB-/BBB- or higher, determined by the middle rating from Moody’s, S&P, and Fitch), have a minimum outstanding par amount of EUR 300 million, and possess at least one year until their final maturity, irrespective of any embedded optionality. For retention within the index, securities must maintain a rating of B3/B-/B- or higher, after excluding the highest and lowest available ratings. Local currency treasury issues are rated using the long-term local currency sovereign rating provided by Moody's, S&P, and Fitch. The index undergoes rebalancing monthly. The portfolio managers seek to achieve the fund's objective by utilizing portfolio modelling tools and analytical methods to invest in a representative sample of the index's securities. This approach, known as sampling, aims to reflect the characteristics of the entire index. The goal of this method is to closely track the index's performance while reducing the costs that would typically be incurred with full index replication. This ETF is passively managed. An investment in this fund constitutes the acquisition of units in a passively managed, index-tracking fund, rather than a direct ownership of the underlying assets held by the fund.