Description

This Invesco MSCI Japan UCITS ETF Acc endeavors to replicate the total net return performance of its benchmark, the MSCI Japan Index, after accounting for associated expenses. The MSCI Japan Index is engineered to gauge the performance of the Japanese equity market, encompassing a broad spectrum of large and mid-capitalisation companies. It covers approximately 85% of the free-float adjusted market value across Japan. The fund primarily achieves its investment objective by maintaining a diverse portfolio of equities. While these holdings are typically responsible for most of the fund's returns, they are generally not identical to the constituents of the reference index. To further enhance tracking accuracy, the fund also utilizes unfunded swap contracts. These agreements involve approved counterparties exchanging with the fund any performance variance between the underlying index and the fund's held equities. This strategy aims to deliver a more precise and consistent correlation to the index's performance than purely physical replication would permit. This ETF operates under a passive management style, meaning an investment constitutes ownership of units in an index-tracking fund, rather than direct ownership of its underlying assets.