Description

This Invesco S&P 500 Scored & Screened UCITS ETF EUR Hdg acc aims to match the net total return of its benchmark, the S&P 500 Scored & Screened Index (referred to as the "Reference Index"), net of all charges. The Reference Index applies a market-capitalization weighting and is structured to measure the performance of companies adhering to specific sustainability criteria, while maintaining an industry sector allocation similar to its broader counterpart, the S&P 500 Index. It is engineered to offer a comparable risk and return profile to the S&P 500, but with superior environmental, social, and governance (ESG) attributes. This enhancement is achieved through the exclusion of companies engaged in specific contentious business areas, such as tobacco, thermal coal, oil sands, small arms, military contracting, and controversial weapons. It also screens out entities that are non-compliant with United Nations Global Compact (UNGC) principles or whose S&P Dow Jones Index ESG Score places them in the lowest 25% within their respective GICS industry groups. The Reference Index undergoes an annual rebalancing. The fund pursues its investment goal by holding a diverse portfolio of equities, which typically accounts for the majority of its returns but may not exactly mirror the Reference Index's composition. To achieve more precise and consistent tracking than would be possible through physical asset replication alone, the fund also utilizes unfunded swap agreements. In these arrangements, approved counterparties commit to exchanging with the fund any difference between the Reference Index's returns and the performance of the fund's equity holdings. Although the fund’s primary investment objective targets the net total return of the index, its swap contracts are linked to the gross total return index. As a result, the swap fees are calculated based on this gross return, which frequently leads to the ETF's performance outperforming the net return index. Furthermore, the Manager has the potential to receive an annual contribution, up to 0.050% of the swap's notional value, from the swap counterparties. This contribution helps cover some fund expenses without affecting the fund’s net asset value or incurring additional costs for investors. This ETF is passively managed; an investment in this product signifies acquiring units in a passively managed, index-tracking fund, rather than direct ownership of the underlying assets.