Description

The Invesco Emerging Markets USD Bond UCITS ETF (Dist) is designed to mirror the total return performance of the Bloomberg Emerging Markets USD Sovereign Index, after accounting for its fees. This fund distributes income to investors on a quarterly basis. The underlying Reference Index comprises fixed and floating-rate government debt instruments from emerging market nations, all denominated in US dollars. For a security to be included in the index, it must have at least US$500 million outstanding and a minimum of one year remaining until its final maturity. The list of emerging market countries included in the index is static between annual reviews. To qualify for inclusion, countries must be designated as low or middle-income by the World Bank, or as a non-advanced economy by the International Monetary Fund (IMF). The index allows for a broad range of credit qualities, permitting investment grade, high yield, and even unrated securities. This ETF is passively managed and employs a sampling strategy. Instead of holding every security in the index, its portfolio managers use sophisticated modelling tools and techniques to build a representative portfolio. They acquire and hold a proportion of the index's securities that collectively reflect the overall characteristics of the entire benchmark. This approach aims to replicate the index's performance as closely as possible while simultaneously minimizing the operational costs associated with full physical replication. An investment in this fund represents an acquisition of units in a passively managed, index-tracking fund, rather than direct ownership of the underlying assets it holds.