Description

This Invesco ETF aims to replicate the net total return performance of the EURO STOXX 50 Index (the "Reference Index"), after accounting for its operational costs. The fund distributes income to investors on a semi-annual basis. The Reference Index is recognized as the Eurozone's leading blue-chip benchmark, featuring 50 prominent companies from Eurozone nations, representing top-tier sector leaders. Its constituents are weighted based on their free-float market capitalization, with a 10% ceiling per company. To achieve its objective, the fund utilizes a synthetic replication method. It holds a diversified portfolio of equities, which typically generates most of the fund's returns, although these securities are usually different from those in the Reference Index. The fund also enters into unfunded swap contracts with approved financial counterparties. These agreements involve exchanging the difference in returns between the fund's equity basket and the Reference Index, thereby seeking to achieve a closer and more consistent tracking performance than solely relying on physical replication. It's important to note that while the fund's investment objective is tied to the net total return index, the swaps reference the gross total return index. As the swap fees paid by the fund are relative to this gross return, the ETF's performance might, in fact, exceed the return of the net return index. Furthermore, to help cover certain fund expenditures, the Manager can receive an annual fee contribution of up to 0.070% of the swap notional amount from the fund's swap counterparties. This specific contribution has no impact on the fund's net asset value and does not represent an additional expense for investors. This ETF is passively managed, meaning it aims to track its index without active stock selection. Consequently, an investment in this fund represents the acquisition of units in a passively managed, index-tracking vehicle, rather than direct ownership of the underlying assets held within the fund.