Invesco has launched a new US government bond ETF with currency hedging on Xetra and Börse Frankfurt.
The Invesco US Treasury Bond 7-10 Year UCITS ETF – EUR Hdg Dist enables investors to participate in the performance of tradable government bonds issued by the US government. The included securities are denominated in US dollars, have an investment grade rating of at least Baa3/BBB-/BBB-, an outstanding nominal value of at least USD 300 million and a remaining term of seven to ten years. The benchmark index excludes inflation-linked bonds, floating rate bonds, STRIP bonds and treasury bills.
The ETF applies a hedging strategy to minimise the foreign exchange risk between the base currency of the index components and the euro.