Description

The Invesco US Treasury Bond UCITS ETF EUR Hdg Dist aims to mirror the overall return of its benchmark, the Bloomberg U.S. Treasury Total Return Index, after accounting for its operational charges. Income generated from interest payments is disbursed to investors every quarter. To mitigate the impact of currency fluctuations between the US Dollar and the Euro, this particular EUR-hedged share class employs foreign exchange hedging strategies. The Reference Index tracks the performance of nominal, fixed-rate debt instruments denominated in US dollars, which are issued by the United States Treasury. These instruments encompass a wide range of maturities, specifically from one year up to thirty years. Certain types of bonds are deliberately excluded from this index, such as those linked to inflation, those with variable interest rates, STRIP bonds (where principal and interest are sold separately), and short-term Treasury bills. The index undergoes a rebalancing process on a monthly basis. The fund's portfolio management team employs sophisticated modeling tools and analytical methods. Their approach involves acquiring and holding a representative subset of the securities found within the index. This 'sampling' methodology aims to closely match the index's performance while simultaneously lowering the expenses typically associated with holding every single security in the index. This ETF operates under a passive management strategy, designed to track its specified index. When you invest in this fund, you are purchasing shares in an index-tracking vehicle, not directly owning the underlying government bonds it holds.