iShares MSCI South Africa ETF (EZA US) – Portfolio Construction MethodologyThe underlying MSCI South Africa 25/50 Index delivers free float-adjusted, market-cap-weighted exposure to South African large- and mid-caps, targeting roughly 85% of the investable equity universe. Constituents come from the MSCI South Africa parent after investability screens on free float, foreign ownership limits, and liquidity (e.g., ATVR/DTV tests), with standard MSCI buffer rules to limit turnover. Weights are then optimized t ...

First Trust Multi Cap Value AlphaDEX Fund (FAB US) – Portfolio Construction MethodologyThe underlying Nasdaq AlphaDEX Multi Cap Value Index delivers a rules-driven value portfolio drawn from the Nasdaq US 500 Large Cap Value, 600 Mid Cap Value, and 700 Small Cap Value universes. Eligible securities must show a trailing five-day ADTV ≥ USD 500,000 for each of the 60 trading days preceding the reference date; only one share class per issuer is used. Stocks are ranked within each size bucket on growth (3/6/12- ...

First Trust Multi Cap Growth AlphaDEX Fund (FAD US) – Portfolio Construction MethodologyThe underlying Nasdaq AlphaDEX Multi Cap Growth Index selects U.S. large-, mid-, and small-cap growth stocks from the Nasdaq US 500/600/700 Growth universes using the AlphaDEX process. Securities must pass liquidity screens (five-day ADTV ≥ USD 500k for each of the prior 60 trading days) and only one share class per issuer is used. Within each size segment, securities are ranked on growth (3-, 6-, 12-month price apprecia ...

iShares Fallen Angels USD Bond ETF (FALN US) – Portfolio Construction MethodologyThe underlying Bloomberg US High Yield Fallen Angel 3% Capped Index targets USD-denominated corporate bonds that were previously investment grade and are now high yield. Eligibility is limited to U.S. corporate issuers (industrial, financials, utilities); country of risk in emerging markets is excluded. Bonds must be fixed-rate (fixed-to-float eligible only during the fixed term), fully taxable, SEC-registered or Rule 144A, wit ...

Franklin FTSE Switzerland ETF (FLSW US) – Portfolio Construction MethodologyThe underlying FTSE Switzerland RIC Capped Index provides Swiss large- and mid-cap exposure, derived from the FTSE Switzerland Index within the FTSE Global Equity Index Series. It includes Swiss companies that pass FTSE’s investability and liquidity screens and fall in the large- and mid-cap segments, which together typically cover about the first mid-80s percent of Switzerland’s free-float investable market cap. Eligible securities ...

Franklin FTSE Taiwan ETF (FLTW US) – Portfolio Construction MethodologyThe underlying FTSE Taiwan Capped Index targets free-float market-cap exposure to Taiwan large- and mid-capitalization equities drawn from the FTSE Taiwan universe, subject to FTSE Global Equity Index Series investability and liquidity screens. It applies RIC capping at each quarterly review: no single company exceeds 20% and the aggregate weight of all constituents with weights >4.5% is constrained to ≤48%; the capping factors are calcu ...

Core Insights - The Fidelity Magellan ETF (FMAG US) employs a bottom-up fundamental research approach focusing on U.S. large- and mid-cap equities while allowing for opportunistic non-U.S. investments when conditions permit [1] Investment Process - The investment process emphasizes durable growth drivers, unit economics, competitive positioning, balance-sheet resilience, and management capital allocation [1] - Analysts integrate price-to-intrinsic-value assessments and variant-perception catalysts into their evaluations [1] Portfolio Construction - Portfolio construction focuses on issuer-level conviction sizing with diversification across industries and business models [1] - Liquidity screens and trading cost estimates are utilized to calibrate entry and exit points [1] Risk Management - Risk is managed through continuous thesis validation, downside-case appraisal, and monitoring of factor and sector concentrations relative to intended exposures [1] - Derivatives may be employed for efficient market exposure or to implement hedges [1] Rebalancing Strategy - Rebalancing is continuous and event-driven, involving trimming positions as valuations converge, theses deteriorate, or better risk-adjusted ideas arise [1]

Fidelity MSCI Materials Index ETF (FMAT US) – Portfolio Construction MethodologyThe underlying MSCI USA IMI Materials 25/50 Index targets comprehensive US materials exposure across large, mid, and small caps from the MSCI US Investable Market universe and then applies a 25/50 diversification overlay. An optimizer minimizes tracking error to the pro forma parent sector while enforcing: no single group entity >25% and the aggregate of >5% group entities ≤50%, implemented with 10% buffers at rebalance (22.5%/4 ...

First Trust Managed Futures Strategy Fund (FMF US) – Portfolio Construction MethodologyThe investment process governing the actively managed First Trust Managed Futures Strategy Fund seeks positive returns uncorrelated to broad equity or bond markets by taking long and short positions across exchange-listed futures spanning equity indexes, rates, currencies and, via a wholly owned Cayman subsidiary (≤25% of assets), commodities. Positioning is driven by a mix of qualitative and quantitative signals indicati ...

Core Insights - The First Trust Municipal High Income ETF (FMHI) targets federally tax-exempt income by investing at least 80% of net assets in U.S. municipal debt, including general obligation, revenue, and private-activity bonds [1] - The fund emphasizes below-investment-grade credit, with a minimum of 50% of net assets in high yield/unrated-to-BB equivalents, and allows up to 10% in distressed municipal securities [1] - The portfolio may include bonds subject to federal Alternative Minimum Tax (AMT) and can utilize derivatives, such as futures, within its strategy [1] Investment Strategy - The fund's investment approach is actively managed, focusing on flexibility across the maturity spectrum of municipal bonds [1] - Pre-refunded or escrowed-to-maturity bonds are classified as investment grade, enhancing the portfolio's quality [1] - The fund generally executes a significant portion of creations and redemptions in cash, which can impact turnover and tax efficiency [1] Risk Management - Security and sector weights are determined by ongoing assessments of structural features, including calls, covenants, and security type, as well as issuer and sector liquidity within the U.S. municipal market [1] - Risk is managed through issue-level diversification and adherence to high-yield and distressed limits [1]