SOFR

SOFR aims to mirror the returns of the Secured Overnight Financing Rate, a primary overnight borrowing benchmark, by mainly investing in repurchase agreements with institutions deemed to be creditworthy. In repos, the fund procures predetermined collateral investments, including cash or high-quality investment instruments such as US government securities, money market funds, or corporate debt securities that are rated investment-grade. Additionally, SOFR may engage in OTC swap agreements and acquire short-term notes in certain circumstances.