ETF Explainer: XGN5

Each issue, we look at an ETF with a particularly interesting chart and explain the market forces behind its performance. This time, we look at the db X-trackers II iBoxx € Germany 3-5 TR UCITS ETF, an exchange traded fund that has around £543,000 in assets under management and that has been climbing the return charts as bund yields have persistently fallen over the last 12 months.

APR 12 Spreads between US Treasurys and German bunds hit a record high as the outlook for the two economies continues to diverge.

JUL 23 Germany's borrowing costs fall to their lowest level on record as the ECB keeps interest rates at rock-bottom lows and geopolitical risks fuel demand for safe-haven debt.

SEP 17 Germany sells more than $4 billion worth of two-year debt at a negative price. This means investors are paying to loan money to the government.

FEB 25 German government sells five-year bonds with a negative yield for the first time in history, just before the ECB starts its ¤60 billion a month quantitative easing program.

MAR 9 Bund yields plummet as the ECB starts its QE program, buying eurozone debt to kick-start the economy and stave off deflation.

APR 10 XGN5 gains just 2.6% over one year in euro terms as the currency tanks and experts question whether bund yields will begin to rise in the latter half of 2015.