Description

This Invesco ETF aims to mirror the net total return performance of its benchmark, the STOXX Europe 600 Optimised Banks Index, net of fees. This specific index provides an efficient mechanism for investors to monitor banking sector companies from the broader STOXX Europe 600 Banks Index, prioritizing liquidity for diverse investment strategies, both long and short. It encompasses firms operating across 17 European nations: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. To achieve its investment objective, the fund primarily holds a portfolio of equities. While these holdings generate the majority of the fund's returns, they typically do not precisely match the constituents of the Reference Index. Furthermore, the fund utilizes unfunded swaps, which are contractual agreements with authorized counterparties to exchange the difference in returns between its internal equity basket and the Reference Index. This method seeks to ensure a more consistent and accurate alignment with the Reference Index's performance than could generally be achieved through direct physical replication alone. This ETF is passively managed; an investment represents the acquisition of fund units rather than direct ownership of the underlying assets.