Description

This Invesco Real Estate S&P US Select Sector UCITS ETF Acc aims to mirror the net total return performance of the S&P Select Sector Capped 20% Real Estate Index (the “Reference Index”), factoring in its associated fees. The Reference Index is designed to represent the real estate segment within the broader S&P 500 Index. Its individual components are weighted based on their float-adjusted market capitalization, with a maximum allocation of 19%; any excess weight is reallocated proportionally among the remaining uncapped constituents. To achieve its investment goal, the ETF predominantly holds a diversified selection of equities. While these typically generate the bulk of the fund's returns, they do not ordinarily precisely match the constituents of the Reference Index. Furthermore, the fund employs unfunded swap agreements. These contracts involve approved counterparties exchanging with the fund any discrepancy between the Reference Index's returns and the performance of the fund's actual equity holdings. This strategy is intended to deliver a closer and more stable alignment with the Reference Index's performance than could generally be achieved through solely physical replication. Crucially, while the fund's objective is to replicate the standard net total return index, the underlying swaps are benchmarked against an enhanced Withholding Tax version of that index. As a consequence, the ETF's pre-fee performance is expected to surpass the return of the conventional net return index. This ETF operates under a passive management framework. Therefore, an investment in this fund signifies the acquisition of units in an index-tracking fund, rather than direct ownership of the underlying assets it holds.