Description

This Invesco ETF (Acc shares) is structured to mirror the total return performance of the Russell 2000 Index, after accounting for its operational expenses. The Russell 2000 Index serves as the benchmark, representing the smaller capitalization companies within the U.S. stock market. More specifically, it includes the 2,000 smallest firms from the broader Russell 3000 Index, collectively accounting for about 10% of that index's total market valuation. To achieve its investment objective, the fund primarily invests in a diversified selection of equities. While these physical holdings generate most of the fund's returns, they are typically not identical to the individual stocks comprising the Russell 2000 Index. The fund also utilizes unfunded swap agreements with approved financial institutions. These contracts enable the fund to exchange the return of its internal stock basket for the precise performance of the benchmark index, ensuring a closer and more consistent replication than would be possible through direct stock ownership alone. This ETF is managed passively, meaning it aims to track its index rather than actively trying to outperform it. Consequently, investing in this fund means purchasing units in a passively managed, index-tracking product, rather than directly acquiring the underlying securities held by the fund.