It is a rod made up mainly magnesium and some zinc.
The one in your hot water service is actually called a Sacrificial
Anode.
Why sacrificial?
Basically, it was discovered in 1824 when sacrificial anodes made from iron attached to the
copper sheath of the hull below the waterline dramatically reduced the corrosion rate of the copper.
Therefore, the copper – being the cathode – would last longer, while the iron anode was working.