First Trust Tactical High Yield ETF (HYLS US) – Portfolio Construction MethodologyThe investment process guiding the actively managed First Trust Tactical High Yield ETF allocates to below-investment-grade USD corporate debt while dynamically adjusting credit beta, liquidity, and duration to conditions. Issuer selection applies fundamental credit work, covenant assessment, and relative-value spread analysis across seniority tiers, emphasizing cash-flow durability and refinancing pathways. Portfolio construc ...

iShares iBonds Dec 2025 Term Treasury ETF (IBTF US) – Portfolio Construction MethodologyThe underlying ICE 2025 Maturity US Treasury Index (USD) targets U.S. dollar-denominated, fixed-rate, non-callable U.S. Treasury bonds scheduled to mature between January 1 and December 15, 2025. Eligible Treasuries must have at least USD 300 million par outstanding after deducting SOMA holdings; inflation-linked (TIPS), Treasury FRNs, STRIPS, and cash-management bills are excluded. The index is market-value weighted by ...

iShares iBonds Dec 2027 Term Treasury ETF (IBTH US) – Portfolio Construction MethodologyThe underlying ICE 2027 Maturity US Treasury Index (USD) offers a rules-based basket of U.S. Treasury notes/bonds with final maturities in calendar year 2027. Eligible securities are USD-denominated, fixed-rate, non-inflation-linked Treasuries; TIPS, STRIPS, floaters, and perpetuals are excluded. Constituents are market-value weighted and maintained on a monthly schedule: new qualifying issues enter at month-end subject ...

iShares 3-7 Year Treasury Bond ETF (IEI US) – Portfolio Construction MethodologyThe underlying ICE US Treasury 3-7 Year Bond Index targets USD-denominated, fixed-rate, nominal U.S. Treasury notes and bonds with remaining maturities ≥3 and <7 years. Eligible issues must have at least USD 300m par outstanding after deducting Federal Reserve SOMA holdings; TIPS, STRIPS, floaters and agency/Treasury-related instruments are excluded. Constituents enter when their remaining term ages into the 3–7 year window and ...

Core Insights - The JPMorgan Carbon Transition U.S. Equity ETF (JCTR US) focuses on large- and mid-cap U.S. equities from the Russell 1000 Index, which includes the largest 1,000 U.S. companies by free-float market capitalization [1] Group 1: Portfolio Construction Methodology - The underlying index excludes companies involved in controversial activities such as weapons, fossil fuels, gambling, adult entertainment, and severe violations of the United Nations Global Compact, as well as the sponsor's own stock [1] - Each remaining company is assigned a Carbon Transition Score based on seven indicator groups across three pillars: emissions, resource management, and risk management [1] - A multi-stage optimization process reweights securities to favor those with higher Carbon Transition Scores while maintaining sector weights similar to the Russell 1000 [1] - The strategy enforces stock-level liquidity caps based on median daily volume, a 10% turnover cap per quarterly rebalance, and adheres to EU Climate Transition Benchmark rules, requiring at least a 30% reduction in weighted-average carbon intensity compared to the Russell 1000 and a 7% annual decarbonization trajectory [1]

JPMorgan Equity Premium Income ETF (JEPI US) – Portfolio Construction MethodologyThe investment philosophy underlying the actively managed JPMorgan Equity Premium Income ETF seeks equity-linked income with lower volatility by combining a large-cap U.S. equity portfolio with a systematic covered-call overlay implemented via equity-linked notes referencing a broad U.S. equity index. The stock sleeve emphasizes liquid, established issuers exhibiting quality and valuation support, with sector and issuer diversi ...

Investment Strategy - The John Hancock Corporate Bond ETF (JHCB US) invests at least 80% of net assets in investment-grade corporate bonds rated AAA–BBB- by S&P/Fitch or Aaa–Baa3 by Moody's [1] - The portfolio construction focuses on sector/industry allocation and bottom-up security selection to identify undervalued credits while incorporating ESG factors [1] - The fund may allocate up to 20% in investment-grade bank loans and cash equivalents, with limits on USD-denominated foreign corporate and government securities [1] Derivatives and Liquidity - Derivatives usage is typically limited to 5% of net assets for risk management and efficient exposure, with no leverage employed [1] - Liquidity is supported by the ETF creation/redemption mechanism, although direct loan positions may be less liquid [1] - Active trading and cash creations/redemptions can impact turnover and taxes, with sell/trim decisions based on relative value, credit migration, and risk controls [1]

John Hancock Multifactor Developed International ETF (JHMD US) – Portfolio Construction MethodologyThe underlying John Hancock Dimensional Developed International Index offers developed-markets (ex-U.S. and ex-Canada) exposure emphasizing smaller size, lower relative price, and higher profitability. Eligible securities are generally those in the top ~85% of each country by market cap and the top ~90% across all eligible countries at reconstitution. Starting from free-float-adjusted market-cap weights, the i ...

Core Insights - The John Hancock Dimensional Large Cap Index targets U.S. equities with market caps larger than the 801st company, forming a large-cap subset from a broad U.S. universe [1] - Eligible stocks are evaluated based on size (free-float market cap), relative price (P/B), and profitability (operating income/book), with a focus on smaller, cheaper, and more profitable names while managing sector exposure [1] - The index is reconstituted and rebalanced semiannually, applying liquidity and investability screens typical for large-cap constituents, with measures to reduce turnover and avoid single-name concentration [1] Portfolio Construction Methodology - Stocks with the weakest profitability and highest relative prices are underweighted or excluded, while lower-momentum names may be de-emphasized [1] - Constituents are float-adjusted and capped to ensure no single issuer exceeds 4% at rebalance, helping to avoid concentration risk [1] - The methodology includes sector-by-sector tilts to maintain a balanced exposure across different sectors [1]

John Hancock Multifactor Mid Cap ETF (JHMM US) – Portfolio Construction MethodologyThe underlying John Hancock Dimensional Mid Cap Index targets U.S. operating companies whose market caps rank from the 200th to the 951st largest at reconstitution, drawn from a free-float-adjusted universe of NYSE, NYSE American, and NASDAQ Global Market listings. Constituents are weighted by free-float market cap after systematic tilts: within the eligible set, smaller companies, lower relative price (typically lower P/B), ...