iShares MSCI Canada ETF (EWC US) - Portfolio Construction Methodology

Core Insights - The iShares MSCI Canada ETF (EWC US) is based on the MSCI Canada Custom Capped Index, which provides market-cap-weighted exposure to Canadian large- and mid-cap stocks, targeting coverage of 85% ±5% of the market [1] Group 1: Index Methodology - The index employs free float-adjusted market capitalization and includes investability screens, such as a foreign room requirement of at least 25% for full inclusion [1] - Liquidity requirements include a 12-month Average Trading Volume Ratio (ATVR) of at least 20%, a 3-month ATVR of at least 20%, and a 3-month trading frequency of at least 90% across four quarters [1] - The index applies custom 25/50-style constraints, capping any single group entity at 22.5% and limiting the aggregate weight of all group entities exceeding 5% to 24.5% [1] - Capping is enforced at each index review, with pro rata redistribution to uncapped names [1] - Quarterly Index Reviews occur on the last business day of February, May, August, and November, updating size-segment cutoffs, free float, liquidity compliance, and reapplying capping to maintain concentration limits [1]