Description

The Invesco NASDAQ-100 Swap UCITS ETF Dist seeks to replicate the net total return of the NASDAQ-100 Index, after accounting for its own fees. This "Reference Index" is composed of 100 of the largest non-financial companies, both US and international, that are traded on the NASDAQ Stock Market, selected based on their market capitalization. It represents various major industries, including advanced computer hardware and software, telecommunications, retail and wholesale trade, and biotechnology. However, it specifically excludes financial sector companies, such as investment firms. The fund employs a two-pronged strategy to achieve its objective. Primarily, it invests in a diversified portfolio of equities, which typically generate the bulk of the fund's returns, although these underlying stocks are generally not identical to those within the actual Reference Index. To bridge any performance gap and ensure precise tracking, the fund also utilizes unfunded swap agreements. Under these contracts, one or more approved counterparties agree to exchange with the fund any difference between the return of the NASDAQ-100 Index and the return delivered by the fund's own equity basket. This hybrid approach aims for more accurate and consistent performance alignment with the Reference Index than would typically be possible through direct physical replication alone. It's noteworthy that while the fund's investment goal is to match the net total return index, the swap contracts it enters into are based on the gross total return index. As a consequence, the ETF's actual performance is likely to exceed the return of the net return index. This ETF is passively managed. When investing in this fund, you are purchasing units in a passively managed, index-tracking fund, rather than gaining direct ownership of the underlying assets held by the fund.