Description

This Invesco STOXX Europe 600 UCITS ETF (Acc) aims to mirror the net total return performance of its benchmark, the STOXX Europe 600 Index, after accounting for all associated fees. The Reference Index is derived from the broader STOXX Europe Total Market Index (TMI) and forms a subset of the STOXX Europe Global 1800 Index. Comprising a fixed number of 600 equities, it provides exposure to large, mid, and small-capitalization companies across various European nations. Its constituents are weighted based on their free-float market capitalization, with an individual stock limited to a 20% cap. To achieve its investment objective, the fund primarily holds a portfolio of equities. While this portfolio typically generates the majority of the fund's returns, its specific holdings generally do not perfectly match those of the benchmark index. The fund also employs unfunded swap agreements. These financial contracts involve one or more approved counterparties exchanging with the fund any difference between the returns of the index and the fund's underlying equity basket. This strategy is designed to deliver a more precise and consistent alignment with the index's performance than would typically be possible through physical replication alone. Despite the fund's investment goal being to replicate the net total return version of the index, the derivatives it enters into are linked to the gross total return index. As the swap fees incurred by the fund are calculated against this gross total return benchmark, the ETF's performance is consequently expected to surpass the return of the net return index. Operating under a passive management strategy, this ETF is an index-tracking vehicle. An investment in this fund represents the acquisition of units within this fund, rather than direct ownership of its underlying assets.