In this ETF, by conducting transactions (currency futures reservations) that reserve exchange rates to be exchanged in the future, the impact of exchange rate fluctuations is mitigated, reducing the exchange rate risk between the U.S. dollar and the yen. This prevents a decrease in asset value during periods of a strengthening yen.
With currency hedging, the price movement of the ETF mainly reflects the price movement of U.S. bonds, enabling investment focused on U.S. interest rate trends.