Xtrackers California Municipal Bond ETF (CA)

Overview

The provided company description outlines a financial investment fund that focuses on the U.S. municipal bond market, specifically targeting investment-grade tax-exempt debt issued within the state of California. This fund aims to track the performance of an underlying index composed of U.S. dollar-denominated, investment-grade, tax-exempt bonds. These bonds are publicly issued in the domestic market by California and various political subdivisions within the state. A key characteristic of this fund is its commitment to invest at least 80% of its total assets in the instruments that make up the underlying index, although it often invests much more than this minimum requirement. Notably, the fund is described as non-diversified, meaning it concentrates its investments more narrowly than diversified funds, potentially focusing on a specific sector, geography, or type of security.

Products and Services

The fund's primary focus is on providing investors with an opportunity to participate in the performance of U.S. dollar-denominated investment-grade tax-exempt debt from the state of California. Below are the key investment products and services it offers:

• Investment-Grade Tax-Exempt Debt Instruments

The core of the fund's portfolio consists of investment-grade, tax-exempt debt instruments. These are bonds issued by the state of California or its political subdivisions that meet certain credit quality standards. Investment in these bonds provides fund investors with income that is exempt from federal taxes, and in some cases, state and local taxes, making them an attractive option for tax-averse investors.

• Focused Investment in the California Municipal Bond Market

By specializing in the California municipal bond market, the fund offers investors a way to gain exposure to the economic and fiscal landscape of California through a single investment vehicle. This focus reflects a strategy that seeks to benefit from the specific risk and reward profiles associated with California's public finance and economic conditions.

• Non-Diversified Fund Structure

As a non-diversified fund, this investment vehicle concentrates its assets in a smaller number of issuers than a diversified fund. This approach allows for potentially higher gains from each investment but also entails a higher level of risk, as the fund's performance is more closely tied to the fortunes of a limited set of bonds and issuers.