Description

The Invesco S&P 500 UCITS ETF Dist aims to replicate the net total return performance of the S&P 500 Index, minus the fund's operational expenses. Investors receive dividends from this fund on a quarterly basis. The S&P 500 Index itself is composed of approximately 500 large-capitalization American companies, representing around 80% of the total market value of US equities. To achieve its investment objective, the fund employs an optimized physical replication strategy combined with financial derivatives. It maintains a portfolio of equities, which typically generates the bulk of its returns, though these holdings are generally not identical to every component of the reference index. The fund also enters into unfunded swap contracts with approved counterparties. These agreements are designed to exchange any difference between the index's return and the return of the fund's underlying equity basket. This hybrid approach is intended to provide a more precise and consistent alignment with the index's performance than traditional physical replication alone. A key detail regarding the swaps is that while the fund's target is the net total return index, the swaps are benchmarked against the gross total return index. Consequently, since the swap fee is tied to this gross return, the ETF's performance may likely exceed that of the net return index. To help cover some of the fund's administrative costs, the Manager has the potential to receive an annual contribution of up to 0.035% of the swap's notional value from the active swap counterparties. This specific contribution does not impact the fund's net asset value and does not represent an additional expense for investors. This ETF operates under a passive management strategy, specifically designed to track its chosen index. An investment in this fund signifies the purchase of units in an index-tracking vehicle, rather than direct ownership of the underlying assets it holds.