Description

The Invesco KBW NASDAQ Fintech UCITS ETF Acc is engineered to replicate the net total return performance of the KBW NASDAQ Financial Technology Index (known as the "Reference Index"), factoring in all fund-related expenses. This Reference Index comprises roughly 50 US-listed companies, each equally weighted, that harness technology to provide financial products and services. These firms operate in diverse sectors such as digital payments, financial data analysis, trading exchanges, online banking platforms, specialized lending, and financial software development. The index undergoes an annual review and is rebalanced every quarter. To achieve its investment goal, the fund primarily invests in a diversified collection of equities. While this stock portfolio is designed to generate the majority of the fund's returns, its specific holdings are generally not identical to the constituents of the Reference Index. Furthermore, the ETF employs unfunded swap agreements with approved financial institutions. These contracts are designed to exchange the difference in performance between the Reference Index and the fund's underlying equity holdings. This hybrid approach aims to secure a more precise and stable tracking of the Reference Index than solely relying on direct physical stock replication. It's important to note that while the fund's primary objective is to track the standard net total return index, its swap agreements reference an enhanced withholding tax version of the index. Consequently, the ETF's performance, before any fees are applied, is expected to surpass the return of the conventional net return index. This ETF is managed passively, meaning an investment in this fund represents the purchase of units in an index-tracking investment vehicle, rather than direct ownership of the individual securities held within its portfolio.