Invesco ETF launches the Equal Weight Swap UCITS ETF on LSE

Invesco ETF launches the Invesco S&P 500 Equal Weight Swap UCITS ETF Acc on London Stock Exchange

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By ETFWorld.co.uk

Gary Buxton, Head of ETFs and Index Strategies for EMEA and APAC at Invesco

Invesco S&P 500 Equal Weight Swap UCITS ETF Acc

The Invesco S&P 500 Equal Weight Swap UCITS ETF Acc aims to provide the net total return performance of the S&P 500 Equal Weight Index, less the impact of fees.

The Reference Index measures the performance of the companies in the S&P 500 index when taking a size-neutral approach. The Reference Index is constructed from the parent S&P 500 index by including the same constituent securities but equally weighting them at each rebalancing date, rather than weighting companies by float-adjusted market capitalisation.

The fund aims to achieve its objective by holding a basket of equities, which typically delivers most of the fund’s return but ordinarily would not be the same as those in the Reference Index. The fund will also use unfunded swaps, which are contracts whereby one or more approved counterparties agrees to exchange with the fund any difference between the returns of the Reference Index and the basket of equities held. The aim is to achieve a closer and more consistent performance relative to the Reference Index than would generally be possible through physical replication alone.

While the investment objective of the fund is to replicate the net total return index, the swaps entered into by the fund reference the gross total return index. As a result, the performance of the ETF is likely to exceed the return of the net return index.

This ETF is passively managed.

Source: ETFWorld.co.uk