RSPE | Invesco ESG S&P 500 Equal Weight ETF

RSPE ISSUER

Invesco, as the issuer of the RSPE, adheres closely to its mandate of investing primarily in securities that make up the Underlying Index. This index is meticulously curated by S&P Dow Jones Indices LLC, incorporating both sustainability and environmental, social, and governance (ESG) criteria while maintaining industry group weights akin to the S&P 500 Equal Weight Index. The Underlying Index, composed of constituents from the S&P 500 Index but equally weighted unlike its parent index, employs rigorous negative screens to exclude companies engaged in certain activities such as oil and gas exploration, controversial weapons, and tobacco products, among others. Furthermore, the Index Provider utilizes data from Sustainalytics to ensure adherence to international norms and standards, particularly those outlined by the United Nations Global Compact. Each eligible company is assigned an S&P DJI ESG score, derived from the S&P Global Corporate Sustainability Assessment, which evaluates its performance on financially material ESG factors. With a portfolio comprising 184 constituents as of October 31, 2023, ranging in market capitalizations, Invesco employs a full replication methodology to track the Underlying Index closely, ensuring a comprehensive representation of its holdings. While the Fund operates as non-diversified, it maintains a concentration policy that aligns with the industry concentration of the Underlying Index, allowing for strategic investments while mitigating risk.

RSPE DIVIDEND

RSPE, represented by Invesco, offers investors the potential for dividend income through its investment strategy. As a fund primarily invested in securities from the Underlying Index, which consists of companies included in the S&P 500 Equal Weight Index and meets specific sustainability and ESG criteria, RSPE benefits from the dividends paid by these constituent companies. By employing a full replication methodology, the fund aims to track the Underlying Index closely, investing in all securities in proportion to their weightings. This approach ensures that RSPE shareholders may potentially receive dividends from a diversified portfolio of companies across various industries, contributing to the overall income generation of the fund. Additionally, the concentration policy of RSPE ensures strategic investments in sectors that align with the industry concentration of the Underlying Index, potentially enhancing dividend yields while managing risk.

RSPE TRACKING

RSPE, managed by Invesco, seeks to closely track the performance of its Underlying Index through a full replication methodology. With at least 90% of its total assets invested in securities comprising the Underlying Index, RSPE endeavors to mirror the index's movements effectively. The Underlying Index, curated by S&P Dow Jones Indices LLC, is designed to measure the equal-weighted performance of securities included in the S&P 500 Equal Weight Index while adhering to sustainability and ESG criteria. This meticulous selection process, combined with rigorous negative screens to exclude certain industries and companies, aims to maintain alignment with investors' preferences for socially responsible investing. By replicating the composition and weightings of the Underlying Index, RSPE provides investors with a transparent and reliable means to participate in the market while potentially mitigating tracking error. Through diligent management and adherence to its investment strategy, RSPE endeavors to achieve its objective of closely tracking the performance of the Underlying Index over time.

RSPE CORRELATION

RSPE, overseen by Invesco, aims to maintain a strong correlation with its Underlying Index by closely replicating its composition and weightings. The Underlying Index, constructed by S&P Dow Jones Indices LLC, reflects the equal-weighted performance of securities included in the S&P 500 Equal Weight Index while incorporating sustainability and ESG criteria. Through a full replication methodology, RSPE invests at least 90% of its total assets in securities that make up the Underlying Index, ensuring a high degree of correlation with its benchmark. Additionally, RSPE's concentration policy aligns its investments with the industry concentration of the Underlying Index, further enhancing correlation. By diligently adhering to its investment strategy and closely tracking the movements of the Underlying Index, RSPE aims to provide investors with a reliable tool for participating in the market while managing correlation risk.

RSPE SECTOR

RSPE, managed by Invesco, strategically positions itself within various sectors through its investment in the Underlying Index. The Underlying Index, meticulously crafted by S&P Dow Jones Indices LLC, reflects the equal-weighted performance of securities within the S&P 500 Equal Weight Index while integrating sustainability and ESG criteria. With a concentration policy that mirrors the industry concentration of the Underlying Index, RSPE ensures a diversified exposure across sectors while maintaining alignment with market trends. By investing in companies spanning multiple industries, RSPE aims to capture growth opportunities while mitigating sector-specific risks. This approach enables investors to participate in the potential returns generated by various sectors, enhancing portfolio diversification and potentially reducing volatility. Through diligent management and adherence to its investment strategy, RSPE provides investors with access to a broad spectrum of sectors within the market landscape

RSPE EXPOSURE

RSPE, under the stewardship of Invesco, offers investors exposure to a diverse range of securities through its investment in the Underlying Index. Crafted by S&P Dow Jones Indices LLC, the Underlying Index reflects the equal-weighted performance of securities within the S&P 500 Equal Weight Index while incorporating sustainability and ESG criteria. By employing a full replication methodology, RSPE aims to invest at least 90% of its total assets in securities that make up the Underlying Index. This approach ensures that investors gain broad exposure to various companies across different industries, capturing the potential returns of the overall market while mitigating individual stock risk. Additionally, RSPE's concentration policy, which mirrors the industry concentration of the Underlying Index, further enhances exposure diversification, enabling investors to participate in the growth opportunities presented by multiple sectors. Through its commitment to maintaining alignment with the Underlying Index, RSPE provides investors with a transparent and efficient means of accessing a broad spectrum of securities within the market.