Description

The Invesco Consumer Discretionary S&P US Select Sector UCITS ETF Acc seeks to replicate the net total return of the S&P Select Sector Capped 20% Consumer Discretionary Index (the “Reference Index”), net of its operational expenses. This benchmark index comprises companies within the consumer discretionary sector of the S&P 500 Index. Its constituents are weighted based on their float-adjusted market capitalization, with a maximum individual weighting of 19%; any surplus weight is then distributed among the remaining uncapped securities. To achieve its objective, the fund employs a synthetic replication strategy. It maintains a diversified portfolio of equities, which typically contributes the bulk of the fund's performance, though these holdings are generally not identical to those within the Reference Index. Furthermore, the fund engages in unfunded swap agreements with approved counterparties. These contracts involve an exchange of the difference between the returns generated by the fund's equity basket and the performance of the Reference Index. This combined approach is designed to deliver a more precise and consistent alignment with the Reference Index's performance than would typically be possible through physical replication alone. While the fund's investment aim is to track the standard net total return of the index, the associated swap agreements reference an enhanced index version that accounts for withholding tax. Consequently, the ETF's performance, before fees, is anticipated to exceed the returns of the conventional net return index. This ETF is passively managed, meaning it aims to strictly track its designated index. An investment in this fund represents the acquisition of units in an index-tracking product, rather than direct ownership of the underlying assets held by the fund.