Description

This Invesco S&P 500 UCITS ETF seeks to replicate the net total return performance of the S&P 500 Index, factoring in fund expenses. It distributes income to investors on a quarterly basis. The S&P 500 Index serves as the benchmark, encompassing roughly 500 prominent US large-capitalisation companies and covering approximately 80% of the total US equity market value. To achieve its objective, the fund uses a hybrid replication approach. It primarily holds a diverse portfolio of equities (a "basket"), which typically generates most of its returns, though these holdings may not perfectly match the constituents of the reference index. To achieve a more precise and stable alignment with the index's performance than could be attained through physical replication alone, the fund also enters into unfunded swap contracts. Through these agreements, approved counterparties exchange with the fund any discrepancies between the returns of its equity basket and those of the S&P 500 Index. Although the fund aims to replicate the S&P 500's net total return, its swap agreements are linked to the index's gross total return. Since the swap fees are applied against this gross return, the ETF's performance may effectively outperform the net return index. Furthermore, the fund's manager is eligible to receive an annual contribution of up to 0.035% of the swap notional amount from the swap counterparties. This arrangement has no bearing on the fund's net asset value and does not represent an additional charge to investors. As a passively managed, index-tracking vehicle, an investment in this ETF constitutes the purchase of fund units, not direct ownership of the underlying assets it holds.