The iShares eb.rexx® Government Germany 0-1yr UCITS ETF (DE) MXN (Acc) aims to track the performance of the eb.rexx® Government Germany 0-1 (Total return index) as closely as possible. It is a passively managed exchange traded fund (ETF) that replicates the benchmark Index.
Fund Exposure
In order to achieve its objective, the Fund mostly invests in interest-bearing securities issued by government entities in Germany. The Index measures the performance of German government bonds with a remaining time to maturity between one month and one year, denominated in Euros with a minimum amount outstanding of EUR 4 billion. The Fund uses foreign currency contracts for currency hedging to reduce the impact of exchange rate fluctuations on returns.
Risks
Investors should be aware that the Fund may generate minimal amounts of leverage from time to time, for example, through the use of financial derivative instruments (FDIs) for efficient portfolio management purposes. The hedging strategy employed by the Fund may not completely eliminate currency risk, which could affect the performance of the units.