Description

The Invesco S&P 500 Scored & Screened UCITS ETF Acc aims to replicate the net total return of its benchmark, the S&P 500 Scored & Screened Index, after accounting for expenses. This benchmark is constructed with a market-capitalization weighting and is designed to track firms that meet specific sustainability benchmarks. It maintains sector exposure comparable to the broader S&P 500 Index while enhancing environmental, social, and governance (ESG) characteristics. The index achieves this by systematically excluding companies involved in controversial business activities (such as tobacco, thermal coal, oil sands, small arms, military contracting, and controversial weapons), those non-compliant with United Nations Global Compact principles, or those ranking in the bottom quartile for ESG scores within their respective GICS industry groups as determined by S&P Dow Jones. This index undergoes an annual recalibration. To fulfill its objective, the fund employs a synthetic replication strategy, combining direct investments in a diversified equity portfolio with unfunded swap agreements. Although the fund’s underlying stock holdings typically generate the majority of its returns, they generally do not perfectly align with the Reference Index's constituents. The unfunded swaps, executed with approved counterparties, are contracts designed to exchange the performance differential between the fund’s equity basket and the Reference Index. This dual approach facilitates a more accurate and consistent tracking of the Reference Index's performance than would be possible solely through physical asset ownership. It's important to note that while the fund's investment target is the net total return of its index, the swap transactions are benchmarked against the gross total return index. The fee associated with these swaps, paid by the fund, is calculated relative to this gross index, which can lead to the ETF's performance potentially surpassing that of the net return index. Furthermore, to contribute towards covering certain operational costs, the Manager has the discretion to receive an annual payment of up to 0.045% of the swap notional value from the engaged swap counterparties. This specific contribution does not impact the fund's net asset value and does not represent an additional expense borne by investors. This ETF is managed passively, meaning it seeks to track an index rather than actively select securities. Consequently, an investment in this fund represents the acquisition of units in an index-tracking vehicle, not direct ownership of the underlying assets.