iShares MSCI Europe Financials ETF (EUFN US) - Portfolio Construction Methodology

Core Insights - The iShares MSCI Europe Financials ETF (EUFN) provides exposure to developed European financials by tracking the MSCI Europe Financials Index, which includes constituents classified in GICS Financials [1] - The MSCI Europe Index targets approximately 85% of free-float market capitalization in developed European markets, focusing on large- and mid-cap segments [1] - The index employs a methodology that includes free-float adjustments, foreign ownership limits, and minimum liquidity requirements, with no caps on issuers, countries, or industries [1] Index Construction Methodology - The MSCI Europe Financials Index is constructed using a free-float market-cap-weighted approach, ensuring that weights reflect the market value within the financial sector [1] - Regular reviews of the index occur quarterly in February and August, and semi-annually in May and November, during which size/liquidity buffers and GICS classifications are reassessed [1] - Additions and deletions to the index are implemented in a single pass during these review cycles [1]