Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C

Profile

https://oci-global.com

Xtrackers II EUR Overnight Rate Swap UCITS ETF 1C is an exchange-traded fund that provides investors with exposure to short-term eurozone interest rates through synthetic replication. Launched on May 25, 2007, and domiciled in Luxembourg, the ETF tracks the Solactive €STR +8.5 Daily Total Return Index, which reflects the performance of a deposit earning the Euro Short-Term Rate (€STR) with daily reinvested interest plus an 8.5 basis points adjustment. Previously benchmarked to the Deutsche Bank EONIA Total Return Index, it transitioned in November 2023 to align with the €STR, the official euro overnight rate successor to EONIA. The fund employs total return swaps for replication, managed by DWS with a low total expense ratio of 0.10% p.a., and follows an accumulating distribution policy. With substantial assets under management exceeding €18 billion, it holds positions including swap contracts and collateral in government bonds from entities like Belgium, the European Union, and France. This ETF serves a key role in the fixed income market as a low-volatility cash equivalent, ideal for parking funds in the Eurozone while capturing overnight rates, appealing to institutional and retail investors seeking stability amid fluctuating monetary policies.