Invesco US High Yield Fallen Angels GBP Hedged UCITS 

The Invesco US High Yield Fallen Angels UCITS ETF, specifically its GBP Hedged Accumulation share class, aims to replicate the total return performance of the FTSE Time-Weighted US Fallen Angel Bond Select Index (referred to as the "Reference Index"), after deducting its own expenses. This particular share class also employs foreign exchange transactions to minimize exposure to currency fluctuations between the US Dollar and British Pound. The Reference Index is constructed to track "fallen angels" – bonds that originally held investment-grade ratings but have since been downgraded to high-yield status. To qualify for inclusion, securities must be USD-denominated bonds issued by corporations headquartered in either the US or Canada. Bonds that have experienced such a rating downgrade in the previous month become eligible. Once added, they typically remain in the index for a five-year period (60 months), provided they continue to meet the inclusion criteria. If a bond is removed and subsequently re-enters the index, its inclusion period is reset. Distinct from traditional indices where weightings are based on market value, this Index's constituents are weighted according to how long they have been included. Bonds that have more recently become "fallen angels" receive a higher weighting, a strategy intended to capture any potential price rebound that might occur shortly after their initial downgrade to high-yield. To ensure diversification, no single issuer can account for more than 5% of the index. Additionally, to maintain liquidity, the time-based weighting of any component is capped at three times its market value-based weight. The Reference Index is rebalanced monthly. The fund's managers seek to achieve its investment objective by utilizing sophisticated portfolio modeling techniques. Instead of acquiring every security in the index, they invest in a representative proportion of the index constituents that accurately reflect the overall characteristics of the entire benchmark. This "sampling" approach aims to closely mimic the index's performance while simultaneously reducing the transaction costs that would typically be incurred with full replication. This ETF is passively managed, meaning it tracks its index rather than engaging in active stock selection. Therefore, an investment in this fund signifies ownership of units in a passively managed, index-tracking fund, rather than direct ownership of the underlying assets it holds.