Description

The Invesco Real Estate S&P US Select Sector UCITS ETF Acc strives to match the net total return performance of its benchmark, the S&P Select Sector Capped 20% Real Estate Index (the “Reference Index”), net of all charges. This Reference Index comprises the real estate segment of the S&P 500 Index. Constituents are weighted by their float-adjusted market capitalization, with a 19% maximum cap; any excess weight is reallocated proportionally among the other uncapped holdings. To meet its objective, the fund primarily invests in a portfolio of equities. While these typically generate most of the fund's returns, they are not usually identical to the securities within the Reference Index. The fund also utilizes unfunded swap agreements with approved counterparties. Through these contracts, the fund exchanges the difference in returns between the Reference Index and its equity basket. This hybrid approach aims for a more accurate and consistent performance alignment with the Reference Index than would be achievable through direct physical replication alone. It's important to note that while the fund's goal is to replicate the standard net total return index, the swaps reference an enhanced Withholding Tax version of the index. As a result, the ETF's performance before fees is expected to surpass that of the standard net return index. This ETF operates under a passive management strategy. An investment constitutes purchasing units in an index-tracking fund, not direct ownership of the fund's underlying assets.