This exchange-traded fund (ETF) is designed to provide investors with a return that closely tracks the performance of a specific overnight interest rate benchmark, which is the Secured Overnight Financing Rate (SOFR) in US dollars. Essentially, it aims to replicate the daily accrual of interest that one would receive from lending money overnight at this prevailing SOFR rate. The fund achieves this by investing in a basket of financial instruments that are designed to mimic the movement of this benchmark. These instruments typically include overnight interest rate swaps, which are contracts between two parties to exchange future interest payments, often with one party receiving a fixed rate and the other receiving a floating rate tied to the SOFR. By utilizing such swaps, the fund can effectively capture the daily performance of the target benchmark. The fund is structured as a UCITS (Undertakings for Collective Investment in Transferable Securities) compliant ETF, which is a regulatory framework designed to protect investors in the European Union. This means it adheres to specific diversification, transparency, and investment guidelines. The fund is traded on a major European stock exchange, providing investors with liquidity, and its units can be bought or sold throughout the trading day at market prices. The purpose of the fund is not to provide capital growth but rather to reflect the return of interest earned on short-term US dollar lending, making it a tool that could be used for managing cash balances, earning some returns from excess funds, or hedging against interest rate risk. This ETF is often used by institutional investors and sophisticated investors who understand the nuances of interest rate markets and require precise exposure to the short-term US dollar interest rate landscape. Its performance will fluctuate in line with the movements of the SOFR, and it typically trades with low volatility as it closely follows a benchmark that is meant to be very stable. It should be noted that while aiming to track the benchmark closely, factors such as fund management fees and transaction costs may result in slight deviations between the fund’s returns and the exact benchmark performance.