Description

The Invesco Morningstar US Energy Infrastructure MLP UCITS ETF Acc seeks to mirror the total return performance of the Morningstar MLP Composite Index, after accounting for fees. This Reference Index is structured to provide broad, diversified exposure to publicly traded energy Master Limited Partnerships (MLPs) in the US. Index constituents are weighted based on the dollar value of their annual distributions, with an individual cap of 10%. The index focuses on MLPs representing the top 97% by market capitalization, is calculated daily, rebalanced quarterly, and reviewed every six months. To achieve its investment goal, the fund primarily invests in a physical portfolio of equities, which typically generates the majority of its returns, though these holdings are generally not identical to those in the Reference Index. To ensure more precise and consistent tracking relative to the Reference Index than solely physical replication would allow, the fund also employs unfunded swaps. These derivative agreements involve approved counterparties exchanging any performance difference between the Reference Index and the fund's equity basket. This ETF is passively managed, meaning an investment constitutes the acquisition of units in an index-tracking fund, rather than direct ownership of its underlying assets.