Description

The Invesco Morningstar US Energy Infrastructure MLP UCITS ETF (Acc) aims to mirror the total return performance of the Morningstar MLP Composite Index (referred to as the "Reference Index"), after accounting for associated fees. The Reference Index itself is designed to offer broad and diversified exposure to US-based, publicly traded Master Limited Partnerships (MLPs) within the energy infrastructure sector. Its constituents are weighted based on the monetary value of their annual distributions, with an individual cap of 10%. The index specifically targets the largest 97% of MLPs by market capitalization. It undergoes daily calculation, quarterly rebalancing, and a semi-annual review. To achieve its objective, the fund primarily invests in a portfolio of equities. While these holdings are typically responsible for the majority of the fund's returns, they may not always be identical to the constituents of the Reference Index. Therefore, the fund also utilizes unfunded swaps. Through these contracts, one or more approved counterparties agree to exchange with the fund any difference between the returns generated by the Reference Index and those from the fund's equity portfolio. This dual approach aims to deliver a more precise and consistent tracking performance relative to the Reference Index than would be achievable through solely physical replication. This ETF operates as a passively managed vehicle. Consequently, an investment in this fund represents the acquisition of units in an index-tracking fund, rather than direct ownership of the underlying assets it holds.