Description

The Invesco S&P 500 Scored & Screened UCITS ETF Acc aims to replicate the net total return performance of its benchmark, the S&P 500 Scored & Screened Index (referred to as the “Reference Index”), after accounting for management fees. This Reference Index is weighted by market capitalization and is designed to track companies that meet specific sustainability criteria. It strives to maintain a sector allocation similar to that of its broader counterpart, the S&P 500 Index (the “parent index”), offering a comparable risk-return profile. However, it improves environmental, social, and governance (ESG) characteristics by excluding companies involved in controversial activities such as tobacco, thermal coal, oil sands, small arms, military contracting, and contentious weapons. It also filters out entities non-compliant with the United Nations Global Compact (UNGC) principles, and those with S&P Dow Jones Index ESG Scores ranking in the lowest quartile within their respective GICS industry groups. The Reference Index is reviewed and adjusted annually. The fund seeks to achieve its objective by investing in a portfolio of equities, which typically generates most of the fund’s returns, although these holdings are not necessarily identical to those in the Reference Index. To enhance tracking precision, the fund also employs unfunded swaps. These are contractual agreements where approved counterparties exchange with the fund any difference between the Reference Index's returns and the actual returns of the fund's equity basket. This strategy is intended to deliver a more precise and consistent alignment with the Reference Index's performance than might be achievable through direct physical asset replication alone. While the fund’s primary goal is to match the net total return index, the swap contracts it enters into are benchmarked against the gross total return index. As a consequence, the swap fees paid by the fund are relative to this gross index, suggesting that the ETF's overall performance is likely to exceed the return of the net return index. To help cover some of the Fund's operational costs, the Manager may receive an annual contribution, up to 0.045% of the notional swap amount, from the active swap counterparties. This contribution has no effect on the Fund’s net asset value and does not impose any additional expense on investors. This ETF is managed passively. An investment in this fund represents the acquisition of units in an index-tracking vehicle, rather than direct ownership of the underlying assets held by the fund.