iShares Global Clean Energy ETF (ICLN US) - Portfolio Construction Methodology

Core Insights - The iShares Global Clean Energy ETF (ICLN US) is based on the S&P Global Clean Energy Transition Index, which focuses on companies involved in renewable power generation and related clean-energy technologies and services [1] Group 1: Index Construction - The index targets companies from both developed and emerging markets engaged in renewable energy activities such as solar, wind, hydro, biomass, and geothermal [1] - Constituents are selected based on exposure scores derived from reported revenue and business descriptions, with minimum exposure required for inclusion [1] - The index employs investability filters that consider minimum float, trading liquidity, and accessibility for foreign listings [1] Group 2: Weighting and Diversification - Constituents are weighted by float-adjusted market capitalization, with single-name caps and thematic diversification controls to avoid concentration in specific sectors like turbines, modules, or utilities [1] - Sustainable business involvement screens are applied to exclude companies engaged in thermal coal and other non-sustainable activities [1] Group 3: Rebalancing - The index undergoes semiannual rebalancing, with updates for interim corporate actions and share/float adjustments [1]