Description

This ETF endeavors to deliver the overall investment return of the Bloomberg U.S. Treasury 7-10 Year Total Return Index USD Unhedged, net of applicable charges. Income generated is distributed to investors on a quarterly basis. The underlying benchmark index measures the performance of specific US Treasury debt instruments: those denominated in US dollars, featuring a fixed interest rate, and having an original maturity period between seven and ten years. Critically, it excludes inflation-linked bonds, variable-rate securities, STRIP bonds (where the principal and interest payments are traded separately), and short-term Treasury bills. The index components are reviewed and adjusted monthly. To achieve its objective, the portfolio management team utilizes sophisticated analytical models and techniques. Instead of acquiring every security within the index, they invest in a carefully selected, representative subset of its constituents. This strategic "sampling" approach is designed to closely mirror the index's performance while simultaneously minimizing the operational costs typically associated with a full replication strategy. As a passively managed investment vehicle, this ETF tracks its specified index rather than actively selecting individual securities. Therefore, an investment in this fund represents ownership of units within an index-tracking fund, rather than direct ownership of the underlying government bonds themselves.