Description

The Invesco Technology S&P US Select Sector UCITS ETF Acc aims to mirror the net total return of its benchmark, the S&P Select Sector Capped 20% Technology Index, after accounting for its own charges. This index identifies technology companies within the S&P 500, weighing each by its free-float market capitalization. However, no single component can exceed 19% of the index, with any excess weight distributed among the other uncapped constituents. The fund employs a dual strategy to meet its objective. It maintains a diversified portfolio of equities, which generates the bulk of its returns but is not an exact replica of the Reference Index. Furthermore, it uses unfunded swap contracts with approved financial institutions. These agreements facilitate the exchange of the performance difference between the fund's equity holdings and the Reference Index, thereby ensuring more precise and consistent tracking than physical replication alone could typically achieve. Notably, although the fund's primary goal is to replicate the standard net total return index, its swap arrangements are linked to an "enhanced Withholding Tax" variant of the index. Consequently, the ETF's performance, prior to the deduction of fees, is expected to exceed the returns of the conventional net return index. This ETF is passively managed and follows an index, meaning an investment signifies ownership of fund units rather than direct holdings in the underlying securities themselves.