Invesco US High Yield Fallen Angels UCITS ETF (FAGB.SW)

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This ETF seeks to mirror the total return performance of the FTSE Time-Weighted US Fallen Angel Bond Select Index (the "Reference Index"), accounting for the impact of fees. Its GBP Hedged share class minimizes exposure to currency fluctuations between the US Dollar and British Pound by engaging in foreign exchange transactions. The Reference Index measures the performance of "fallen angels"—bonds that initially held an investment-grade rating but were subsequently downgraded to high-yield. To qualify for inclusion, securities must be USD-denominated bonds issued by corporations headquartered in the US or Canada. Bonds that experienced a rating change from investment-grade to high-yield in the previous month are eligible and will be held for a period of 60 months, assuming they continue to meet the inclusion criteria. If a bond exits and subsequently re-enters the Index, its inclusion period is reset. Unlike indices where constituent weights are determined by market value, this Index assigns weights based on the time elapsed since a bond became a "fallen angel." Newer fallen angels receive higher weights, aiming to capture potential price rebounds often observed shortly after their initial downgrade to high-yield. To maintain diversification, no single issuer can represent more than 5% of the index. For liquidity purposes, constituents' time-based weights are capped at three times their respective market value-based weights. The Reference Index is rebalanced on a monthly basis. The portfolio managers aim to achieve the fund's objective by utilizing portfolio modeling tools and techniques to purchase and hold a proportion of the index securities that effectively represents the characteristics of the entire index. This sampling method strives to replicate the index performance as accurately as possible while reducing the costs typically associated with full replication. This ETF is passively managed. An investment in this fund constitutes an acquisition of units in a passively managed, index-tracking fund, rather than direct ownership of the underlying assets held by the fund.