Description

The Invesco Morningstar US Energy Infrastructure MLP UCITS ETF Acc seeks to replicate the overall performance of the Morningstar MLP Composite Index (referred to as the “Reference Index”), after accounting for management fees. This Reference Index offers broad, diverse exposure to US-listed energy Master Limited Partnerships (MLPs). Its components are weighted based on the monetary value of their annual distributions, with individual holdings capped at 10%. The index focuses on the largest 97% of MLPs by market capitalization and undergoes daily calculation, quarterly rebalancing, and a semi-annual review. To achieve this objective, the fund employs a synthetic replication strategy. It invests in a portfolio of equities, which forms the primary source of its returns, though these may not be the exact securities found in the Reference Index. To bridge any performance gaps, the fund utilizes unfunded swap agreements. Through these contracts, authorized counterparties exchange with the fund any discrepancies between the returns of its equity portfolio and the Reference Index. This method is designed to deliver a more precise and stable tracking performance relative to the Reference Index than a purely physical replication approach might achieve. This ETF is passively managed, tracking its benchmark index, meaning investors acquire units in this index-tracking fund itself, not direct ownership of the underlying assets held within the fund.