Description

This Invesco Health Care S&P US Select Sector UCITS ETF Acc aims to replicate the net total return of the S&P Select Sector Capped 20% Health Care Index, after accounting for its own operational charges. The benchmark index is comprised of companies within the healthcare sector of the broader S&P 500 Index. Each company's weighting within the index is determined by its float-adjusted market capitalization, with an individual cap of 19%. Any weight exceeding this limit is redistributed proportionally among the other uncapped constituents. The fund pursues its investment objective by holding a portfolio of equities, which typically generates the majority of its returns. However, this portfolio is not ordinarily identical to the Reference Index's holdings. To achieve precise index replication, the fund utilizes unfunded swaps. These are contractual agreements with approved financial counterparties, where the fund and the counterparty exchange the difference between the returns of the fund's internal equity basket and the actual performance of the Reference Index. This synthetic methodology is designed to provide more consistent and accurate tracking of the Reference Index than would generally be possible through direct physical replication alone. A notable feature is that while the fund's primary goal is to mirror the standard net total return index, its swaps are structured to reference an "enhanced Withholding Tax" version of the index. Consequently, the ETF's performance before fees is anticipated to exceed the return of a conventional net return index. This ETF operates under a passive management strategy. An investment in this product signifies the purchase of units in an index-tracking fund, rather than direct ownership of the underlying assets held by the fund.