Description

This Invesco Preferred Shares UCITS ETF seeks to match the net total return of the ICE BofA Diversified Core Plus Fixed Rate Preferred Securities Index, after accounting for its expenses. Dividends are distributed to investors every quarter. The benchmark index tracks fixed-rate preferred securities, denominated in US dollars, that are issued in the US domestic market. Securities within the index are weighted by their market capitalization, though strict diversification rules apply: no single issuer can represent more than 10% of the index, and the combined weighting of all issuers individually exceeding 5% is capped at 40%. To be included, securities must achieve an average credit rating of at least B3 from the three primary agencies (Moody's, S&P, and Fitch) and hail from a nation with an investment-grade country risk profile. The fund endeavors to achieve this objective through direct replication, acquiring and holding, as far as feasible, all the securities found in the Reference Index according to their respective weightings. Both the benchmark index and the fund undergo monthly rebalancing and reconstitution. Operating under a passive management strategy, this ETF means investors are purchasing shares in an index-tracking fund, not direct interests in the underlying assets held within it.