Description

The Invesco S&P 500 UCITS ETF Acc seeks to mirror the net total return performance of the S&P 500 Index, after accounting for its own fees. This benchmark represents approximately 500 major U.S. companies, covering about 80% of the entire U.S. equity market capitalization with its large-cap constituents. The fund achieves its objective through a synthetic replication strategy, holding a diversified portfolio of equities that typically generate the majority of its returns but are generally not identical to the index components. To bridge the performance gap between its held assets and the S&P 500, the ETF utilizes unfunded swap agreements. Through these contracts, approved counterparties exchange with the fund any difference between the index's returns and the performance of the fund's internal equity basket. This method is designed to offer a more consistent and precise tracking of the index than physical replication alone. Although the fund's goal is to replicate the net total return index, the swaps themselves reference the gross total return index. Therefore, because the swap fee is tied to this gross return, the ETF's performance may actually exceed the net return of the index. To help cover some of the fund's running costs, the Manager can receive an annual contribution of up to 0.035% of the swap's notional amount from its counterparties. This payment assists with fund expenses but has no bearing on the fund's net asset value and incurs no additional cost for investors. This ETF is passively managed, meaning an investment constitutes acquiring units in an index-tracking fund rather than direct ownership of the underlying assets it references.