Description

The Invesco JPX-Nikkei 400 UCITS ETF Acc is designed to replicate the net total return of the JPX-Nikkei 400 Index (its benchmark) after accounting for all fees. This benchmark index, co-created by Nikkei and the Japan Exchange Group, offers extensive coverage of the Tokyo Stock Exchange, featuring 400 Japanese companies. It includes a diverse mix of large-cap, small-cap, growth-oriented, and innovative firms. A key selection criterion for the index is a company's potential to enhance shareholder value, with constituents chosen based on their size, as well as their return on equity, operational profitability, and corporate governance practices. To achieve its investment objective, the fund typically invests in a portfolio of various stocks, which, while forming the core of its returns, usually differs from the actual index holdings. To further enhance tracking accuracy, the fund utilizes unfunded swaps. These financial agreements with approved counterparties allow the fund to exchange any return discrepancies between its stock portfolio and the benchmark index. This combined strategy aims for a more accurate and steady alignment with the index's performance than could be achieved through solely holding physical assets. This is a passively managed, index-tracking fund, meaning investors acquire units in the fund itself rather than direct ownership of the underlying securities.