Invesco Financials S&P US Select Sector UCITS 

The Invesco Financials S&P US Select Sector UCITS ETF (XLFQ.L) seeks to mirror the net total return performance of the S&P Select Sector Capped 20% Financials Index, net of fees. This benchmark index focuses on the financial sector within the broader S&P 500, with individual company weightings determined by their float-adjusted market capitalization and capped at 19%. Any excess weight beyond this threshold is then proportionally reallocated to the remaining uncapped constituents. To achieve its goal, the fund primarily invests in a diversified equity portfolio. While this basket typically generates the bulk of the fund's returns, it does not usually comprise the exact same holdings as the Reference Index. To bridge this gap and ensure closer alignment, the ETF utilizes unfunded swaps. These agreements with approved counterparties facilitate the exchange of returns, covering the difference between the fund's equity basket and the Reference Index. This combined strategy aims to deliver a more consistent and accurate performance relative to the Reference Index than would be possible through direct physical replication alone. It's important to note that although the fund's objective is to track the standard net total return index, the swaps employed reference an enhanced version of the index that accounts for optimized withholding tax. As a result, the ETF's performance before fees is anticipated to surpass that of the conventional net return index. This fund operates under a passive management strategy, meaning an investment represents ownership of units in an index-tracking fund, not direct acquisition of its underlying assets.