Wahed FTSE USA Shariah ETF (HLAL US) - Portfolio Construction Methodology

Core Viewpoint - The Wahed FTSE USA Shariah ETF (HLAL US) is designed to provide exposure to Shariah-compliant large- and mid-cap U.S. equities, adhering to specific business and financial criteria to ensure compliance with Shariah law [1] Group 1: Portfolio Construction Methodology - The underlying FTSE USA Shariah Index includes equities selected from the FTSE USA universe, focusing on free-float market capitalization [1] - Business screens exclude sectors such as conventional finance, alcohol, tobacco, pork-related products, gambling, weapons, adult entertainment, and certain music/film broadcasting [1] - Financial ratio screens require that debt is less than 33.333% of total assets, cash and interest-bearing items are less than 33.333% of total assets, accounts receivable plus cash are less than 50% of total assets, and non-compliant income is no more than 5% of total revenue [1] - Constituents that meet these criteria are weighted by free-float market cap without explicit single-name or sector caps [1] - Shariah compliance is reassessed quarterly, with changes implemented in March, June, September, and December [1] Group 2: Additional Insights - Standard FTSE investability and liquidity rules apply to moderate turnover within the ETF [1] - For further analysis, the ETF analytics platform offers institutional-grade insights, including performance and risk metrics, correlations, sensitivities, and factor exposure [1]