Xtrackers II Germany Government Bond UCITS ETF 1C

Xtrackers II Germany Government Bond UCITS ETF 1C is an exchange-traded fund designed to provide broad exposure to euro-denominated sovereign bonds issued by the German government. The fund seeks to track the performance of the iBoxx® EUR Germany index, which encompasses government bonds of all maturities with a minimum of one year to maturity and a specified minimum outstanding amount. By employing a physical sampling replication method, it holds a carefully selected subset of the index’s constituents, ensuring efficient and representative coverage of the issuer’s broader sovereign debt market. Notably, this ETF adopts an accumulating distribution policy, automatically reinvesting interest income rather than paying it out to investors, thus enabling compounding within the fund. With a low total expense ratio of 0.15% per annum and over one billion euros in assets under management, it stands out as a cost-efficient and sizable vehicle for accessing German federal bonds. The ETF plays a crucial role in fixed income portfolios by offering exposure to one of Europe’s safest and most liquid government bond markets, suitable for diversified portfolios seeking stability and quality in sovereign debt allocations.