Description

The Invesco S&P 500 UCITS ETF Acc seeks to mirror the performance of the S&P 500 Index, specifically its net total return, after accounting for associated expenses. This benchmark, often referred to as the "Reference Index," encompasses approximately 500 large-capitalization American companies, collectively covering about 80% of the overall U.S. equity market capitalization. To achieve its investment objective, the fund employs a synthetic replication strategy. This involves holding a collection of equities, which typically drives most of the fund's returns but usually doesn't directly replicate the S&P 500's constituents. Additionally, it utilizes unfunded swap agreements with approved financial institutions. Through these contracts, counterparties agree to exchange with the fund any discrepancies between the returns of the fund's internal equity basket and the Reference Index. This combined approach of holding equities and using swaps is designed to deliver a more precise and consistent alignment with the index's performance than could be achieved through solely physical asset replication. Although the fund's goal is to track the net total return index, the swaps themselves are linked to the gross total return index. As the swap fee is calculated based on this gross total return, the ETF's actual performance is often expected to slightly exceed the net return index. The fund's Manager may receive an annual contribution of up to 0.035% of the swap's notional value from the active swap counterparties, which helps offset some fund costs. This contribution does not impact the fund's Net Asset Value (NAV) and is not an additional charge to investors. This ETF operates under a passive management strategy, strictly aiming to track its benchmark index. Investing in this fund means acquiring units in an index-tracking vehicle, rather than directly owning the underlying assets held by the fund.