Description

The Invesco Consumer Staples S&P US Select Sector UCITS ETF Acc aims to mirror the net total return performance of the S&P Select Sector Capped 20% Consumer Staples Index, after accounting for all associated costs. This benchmark is composed of companies within the consumer staples industry from the S&P 500 Index. Each company's weight in the index is determined by its free-float market capitalization, with a maximum individual cap of 19%; any excess weight is then distributed among the remaining uncapped constituents. The fund employs a hybrid approach to achieve its goal. It holds a portfolio of equities, which typically generates most of the fund's returns, though these holdings may not perfectly match the index components. Additionally, it enters into unfunded swap agreements with approved counterparties. These contracts obligate the counterparties to exchange with the fund any difference between the returns of the Reference Index and the performance of the fund's equity basket. This method is designed to provide more accurate and consistent tracking of the Reference Index than solely through direct physical replication. Notably, while the fund's primary objective is to replicate the standard net total return index, the swaps it uses are based on an optimized version of the index that incorporates enhanced Withholding Tax (WHT considerations. Consequently, the ETF's performance prior to fees is expected to exceed the return of the standard net return index. This ETF is a passively managed, index-tracking fund. Investing in it means acquiring units of the fund, not direct ownership of the underlying securities it holds.