Description

This Invesco ETF is designed to mirror the net total return of the MSCI World Index, after accounting for its fees. The MSCI World Index itself benchmarks equity market performance across developed nations, encompassing a broad range of large and mid-capitalisation companies, which collectively represent about 85% of the free float-adjusted market capitalization in each country. To achieve its goal, the fund primarily invests in a selection of equities that generate most of its returns, though these holdings are typically not identical to those in the reference index. It also utilizes unfunded swap contracts with authorized counterparties to exchange any performance differential between its internal stock portfolio and the index, thereby aiming for a more precise and stable tracking outcome than purely physical replication. A key feature is that while the fund's objective is to replicate the standard net total return index, its swap agreements are tied to a version of the index optimized for withholding tax, which means the ETF's performance before fees is likely to surpass that of the conventional net return index. Furthermore, to help cover certain fund expenses, the Manager may receive an annual fee contribution of up to 0.08% of the swap notional amount from the swap counterparties; this arrangement does not impact the fund's net asset value nor does it impose any additional cost on investors. Classified as passively managed, this ETF allows investors to purchase units in an index-tracking vehicle, rather than directly acquiring the individual underlying assets held by the fund.