Description

The Invesco US Treasury Bond 0-1 Year UCITS ETF (GBP Hdg Dist) is designed to replicate the total investment returns of the Bloomberg US Treasury Coupons Index (referred to as the "Reference Index"), after factoring in its expenses. The fund distributes income to its shareholders on a quarterly basis. To mitigate the risk associated with currency fluctuations between the US Dollar and the British Pound, the GBP Hedged share class actively engages in foreign exchange transactions. The Reference Index itself measures the performance of US dollar-denominated government debt, issued by the US Treasury, which carries a fixed interest rate and is not inflation-linked. Securities included in the index must have a remaining maturity period of at least one month but no more than 12 months. Specifically excluded from the index are Treasury bills, inflation-linked bonds, floating-rate bonds, and STRIP bonds (these are components of a bond, such as principal or individual coupon payments, sold separately). The composition of this benchmark is reviewed and updated monthly. The portfolio management team strives to achieve the fund's objective by employing advanced modeling tools and techniques. This involves holding a representative sample of the index's securities, rather than every single one. This "sampling" strategy aims to track the index's performance as accurately as possible while simultaneously reducing the trading costs that would typically be incurred with a full replication approach. This ETF is managed passively, meaning it aims simply to follow its benchmark rather than actively attempting to outperform it. Therefore, an investment in this fund represents an acquisition of units in a passively managed, index-tracking product, not a direct ownership of the underlying bonds held by the fund.