Description

This Invesco KBW NASDAQ Fintech UCITS ETF Acc seeks to mirror, after deducting its operational costs, the net total return performance of the KBW NASDAQ Financial Technology Index (referred to as the Reference Index). The Reference Index tracks U.S.-listed businesses that leverage technology to deliver a range of financial products and services. These offerings include, but are not limited to, payments processing, financial data provision, operation of exchanges, internet-based banking, specialized lending, and financial software development. It typically includes around 50 companies, each given equal weighting, and undergoes an annual review with quarterly rebalancing of its constituents. To achieve its investment goal, the fund employs a synthetic replication strategy. It holds a diversified portfolio of equities, which generates the majority of its returns but does not necessarily mirror the exact holdings of the Reference Index. Additionally, the fund utilizes unfunded swap agreements. These are contractual arrangements with approved financial institutions where the counterparties agree to exchange with the fund any performance differential between the Reference Index and the fund's equity basket. This hybrid approach aims for more precise and consistent index tracking than a purely physical replication method might achieve. Although the fund's primary aim is to replicate the standard net total return of the index, the swap agreements are structured to reference a version of the index optimized for withholding tax efficiency. Consequently, before accounting for its fees, the ETF's performance is anticipated to surpass that of the standard net return index. This ETF is characterized by passive management. When you invest in this fund, you are acquiring units in a passively managed, index-tracking vehicle, not directly purchasing the underlying assets held within its portfolio.