The fund aims to track, before expenses, the price and yield performance of the Barclays Euro Area Liquid Corporates™ 1-5 Year Index.The fund invests in bonds of the underlying index, and provides exposure to investment grade, EUR-denominated securities issued by Eurozone corporate issuers operating in financial, industrial and utility sectors.
The Barclays Euro Area Liquid Corporates™ 1-5 Year Index (hedged to USD) is an index weighted by market capitalization. The Index represents liquid corporate bonds with a time to maturity of at least 1 year, but no more than 5 years, issued by investment grade companies. The bonds are valued daily based on their bid price. New bonds are included at their ask price and then removed at the bid price as part of the monthly index rebalancing. Exchange rate fluctuations between the foreign currency and index currency are reduced by the sale of foreign exchange contracts with a term of one month.