Description

The Invesco JPX-Nikkei 400 UCITS ETF Acc aims to mirror the net total return of its benchmark, the JPX-Nikkei 400 Index, after accounting for fees. This Reference Index provides extensive exposure to 400 companies listed on the Tokyo Stock Exchange, encompassing large, small, growth-oriented, and innovative market segments. It specifically identifies companies poised for significant shareholder value creation. Jointly created by Nikkei and the Japan Exchange Group, its constituent selection goes beyond mere company size, incorporating rigorous standards such as return on equity (ROE), operating profitability, and corporate governance. The fund endeavors to achieve its goal primarily through investment in a diversified equity portfolio. While this portfolio generates the majority of its returns, its holdings generally do not precisely match those of the index. To ensure a more precise and stable alignment with the index's performance than pure physical replication typically permits, the fund also employs unfunded swap contracts. These financial instruments, arranged with approved counterparties, facilitate the exchange of any disparity between the index's returns and those of the fund's equity holdings. Operating as a passively managed ETF, an investment represents the acquisition of units in an index-tracking vehicle, rather than direct ownership of the fund's underlying securities.