iShares $ Treasury Bond 20+yr UCITS ETF - EUR Hedged (Dist)
| Issuer: iShares |
| Asset Class: Fixed Income |
| TER: 10bps |
| Trading Currency: EUR |
| Pays Income: False |
| Listing Date: 25 Sep 2017 |
| Ticker: DTLE |
| ISIN: IE00BD8PGZ49 |
This investment vehicle offers targeted exposure to the long-dated segment of the U.S. Treasury market, comprising government bonds with remaining maturities of twenty years or more. The fund is designed to closely track the performance of an index that represents these long-term U.S. sovereign securities, which are considered to be among the highest credit quality assets globally. A key feature of this particular share class is its currency-hedging mechanism. It aims to mitigate the impact of fluctuations between the U.S. dollar, the currency of the underlying assets, and the euro. This makes it a suitable option for investors who want to isolate the performance of long-term U.S. bonds without taking on foreign exchange risk.
Given its focus on long-maturity bonds, the fund exhibits high duration, meaning its price is particularly sensitive to changes in interest rates. Investors may utilize this product to express a view on the direction of U.S. monetary policy; for instance, the fund's value would be expected to appreciate during periods of falling interest rates and decline when rates are rising. It can serve as a core component in a diversified portfolio, acting as a potential hedge against economic downturns or equity market volatility, as U.S. Treasuries have historically been a safe-haven asset. The physical replication method ensures that the fund holds the actual bonds from the underlying index.
The distributing nature of the fund means that income generated from the bond coupons is paid out to investors on a semi-annual basis, which can appeal to those seeking a regular income stream. For a euro-based investor, this fund provides a convenient and efficient way to access the U.S. long-term government bond market while neutralizing currency risk, allowing for a pure-play investment on interest rate movements and the creditworthiness of the U.S. government.
