U.S. Global Jets ETF (JETS US) - Portfolio Construction Methodology

Core Insights - The U.S. Global Jets ETF (JETS) targets a diverse range of global airline-related companies, including passenger airlines, aircraft manufacturers, airports, and related services [1] Group 1: Portfolio Construction Methodology - The underlying index requires eligible companies to be exchange-listed with a market capitalization of at least USD 100 million and to meet a minimum average daily trading volume (ADVT) [1] - At each quarterly reconstitution, the four largest U.S. passenger airlines by market cap and ADVT receive a fixed weight of 10% each, while the next eight U.S. or Canadian passenger airlines receive 3% each [1] - Remaining candidates are evaluated based on factors such as cash flow return on invested capital (CFROIC) and ADVT, with the top eight U.S./Canadian companies receiving 2% each, the next ten non-U.S. companies receiving 1% each, and the next twenty non-U.S. companies receiving 0.5% each [1] - Weights of the portfolio can fluctuate between quarterly reviews, and no additional issuer caps are applied [1]