Invesco S&P 500 Scored & Screened UCITS ETF (SPEP.L)

Invesco S&P 500 Scored & Screened UCITS ETF

This Invesco S&P 500 Scored & Screened UCITS ETF Acc aims to replicate the net total return performance of its designated benchmark, the S&P 500 Scored & Screened Index (referred to as the “Reference Index”), after accounting for associated charges. The Reference Index is a market-capitalization-weighted measure designed to track the performance of companies meeting specific sustainability criteria. It also endeavors to maintain an overall industry sector weighting that closely aligns with its broader parent index, the S&P 500 Index. The index's methodology is crafted to deliver a risk and return profile comparable to the S&P 500, while simultaneously enhancing its Environmental, Social, and Governance (ESG) characteristics. This is achieved by systematically excluding securities from companies involved in: 1) contentious business activities such as tobacco, thermal coal, oil sands, small arms manufacturing, military contracting, and controversial weapons; 2) those identified as non-compliant with the United Nations Global Compact (UNGC) principles; or 3) entities whose S&P Dow Jones Index ESG Score falls within the lowest 25% of scores for their respective GICS industry groups. The Reference Index undergoes an annual rebalancing. To achieve its objective, the fund primarily invests in a diversified basket of equities. While these holdings typically generate the majority of the fund’s returns, they are generally not identical to the constituents of the Reference Index. The fund further employs unfunded swap agreements with approved counterparties. These contracts facilitate the exchange of any performance difference between the Reference Index and the fund's equity basket. This combined approach aims to deliver a more precise and consistent tracking performance relative to the Reference Index than would typically be possible through physical asset replication alone. It's important to note that while the fund's investment objective targets the net total return index, the swaps utilized by the fund reference the gross total return index. As the swap fees paid by the fund are based on this gross total return index, the ETF's overall performance is expected to surpass the return of the net return index. To help defray certain fund expenses, the Manager may receive an annual contribution, up to 0.045% of the swap notional amount, from the swap counterparties. This contribution does not impact the Fund’s Net Asset Value (NAV) and does not represent an additional cost for investors. This ETF is passively managed. Investing in this fund means acquiring units in an index-tracking fund managed without active discretion over security selection, rather than directly purchasing the underlying assets held by the fund.