iShares MSCI Brazil Small-Cap ETF (EWZS US) - Portfolio Construction Methodology

Core Insights - The iShares MSCI Brazil Small-Cap ETF (EWZS US) is based on the MSCI Brazil Small Cap Index, which includes small-cap stocks from Brazil that meet specific investability standards [1] Group 1: Index Construction - The index represents small caps between the Standard 85% cutoff and approximately 99% free-float market cap coverage [1] - Eligible securities must pass MSCI's investability standards, including free float and liquidity tests, measured by Annualized Traded Value Ratio and trading frequency [1] - Constituents with free float less than 15% must meet a higher size requirement of at least 1.8 times the applicable minimum to enter or remain in the index [1] Group 2: Selection and Weighting - Selection is based on free-float market cap rank within Brazil, and foreign listings are eligible if they comply with domicile and listing rules [1] - The index uses free-float market capitalization for weighting, with no style or factor tilts, and foreign ownership limits are reflected through free-float multipliers [1] Group 3: Maintenance and Review - The index undergoes Quarterly Comprehensive Index Reviews in February, May, August, and November, during which size bands, buffers, free float, and liquidity are reassessed, and weights are reset [1]