Description

The Invesco Euro Government Bond 7-10 Year UCITS ETF Dist aims to replicate the total return performance of the Bloomberg Euro Government Select 7-10 Year Index, factoring in the deduction of fees. Income distributions are made to investors every quarter. The benchmark index tracks fixed-rate government bonds, denominated in Euros, issued by France, Germany, Italy, the Netherlands, and Spain. For inclusion, these debt instruments must have between seven and ten years remaining until maturity. Other conditions include being Euro-denominated, holding a credit rating of at least B3/B-/B- (determined by taking the middle rating from Moody's, S&P, and Fitch, after discarding the highest and lowest), and having a minimum par amount outstanding of EUR 300 million. The rating for local currency treasury issues is based on their respective long-term local currency sovereign ratings. The index is rebalanced on a monthly basis. Rather than acquiring every security in the index, the fund's managers employ advanced portfolio modelling and analytical tools to implement a "sampling" strategy. This involves selecting and holding a representative subset of the index's securities that accurately reflects its overall characteristics. The goal of this approach is to closely emulate the index's performance while minimizing the transaction costs associated with full replication. This ETF is a passively managed, index-tracking investment vehicle, meaning an investment represents the acquisition of fund units, not direct ownership of the underlying assets.