Description

This Invesco Exchange Traded Fund (ETF), identified by the ticker N4US.L, aims to mirror the total net return performance of the JPX-Nikkei 400 USD Hedged Index (referred to as the Reference Index), factoring in the fund's operational expenses. The Reference Index offers comprehensive coverage of 400 companies listed on the Tokyo Stock Exchange, spanning large-cap, small-cap, growth, and innovative market segments. Its methodology, established by Nikkei and the Japan Exchange Group, emphasizes identifying businesses capable of generating substantial shareholder value. Stock selection criteria extend beyond company size to include financial metrics like return on equity, operating profit, and robust corporate governance practices. To mitigate the impact of exchange rate fluctuations between the Japanese Yen and the US Dollar, the USD Hedged version of the index integrates a monthly currency hedge into its calculation. To achieve its investment objective, the fund primarily invests in a diversified portfolio of equities. While this portfolio generates the majority of the fund's returns, its holdings typically won't be identical to those within the Reference Index. To enhance tracking accuracy and ensure a more consistent alignment with the index's performance than could be achieved through direct physical stock ownership alone, the fund also employs unfunded swap agreements. Through these contracts, one or more approved financial counterparties agree to exchange with the fund any disparity between the returns generated by its internal equity basket and the actual performance of the Reference Index. This ETF operates under a passive management strategy. Consequently, an investment represents the acquisition of units in a passively managed, index-tracking fund, rather than direct ownership of the underlying assets held by the fund itself.