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VanEck Vectors Environmental Services ETF (EVX US) - Portfolio Construction Methodology
ETF Strategy· 2026-01-20 09:26
Core Insights - The VanEck Vectors Environmental Services ETF (EVX US) provides exposure to U.S.-listed companies primarily engaged in environmental services [1] - The underlying index includes companies involved in solid-waste collection, recycling, soil remediation, and wastewater management [1] Index Construction Methodology - The NYSE Arca Environmental Services Index employs a rules-based approach to select eligible companies, requiring a market capitalization above 100 million USD and a three-month average daily traded value exceeding 1 million USD [1] - Constituents are reviewed quarterly, with companies falling below a market cap of 75 million USD or a traded value of 750,000 USD being removed to maintain at least 90% of index weight in qualifying securities [1] - The index utilizes a modified equal-weighting scheme, where the four largest companies collectively account for 40% of the index weight, while the smallest five contribute 10%, and the remaining constituents share the residual 50% equally [1] - Quarterly reviews reset both memberships and weights within the index [1]
First Trust Indxx Global Natural Resources Income ETF (FTRI US) - Portfolio Construction Methodology
ETF Strategy· 2026-01-19 20:50
Group 1 - The First Trust Indxx Global Natural Resources Income ETF (FTRI US) targets 50 dividend-paying companies that derive at least 50% of their revenue from upstream energy, materials, agriculture, water, or timber activities [1] - Eligible securities must have positive trailing-12-month EPS, have paid dividends for the past three years, and must not have reduced dividends in the last two years [1] - The index selects the 50 highest dividend-yielding companies, with a limit of 30% for any of the five resource categories [1] Group 2 - Constituents are weighted by free-float market capitalization, with a 9.9% cap per issuer and a 40% cap on the aggregate of stocks above 4.5% [1] - Excess weight is redistributed pro rata among the remaining constituents [1] - The index undergoes reconstitution and rebalancing semi-annually, typically in March and September [1]
Invesco S&P 500 Equal Weight Communication Services ETF (RSPC US) - Portfolio Construction Methodology
ETF Strategy· 2026-01-19 12:59
Core Insights - The Invesco S&P 500 Equal Weight Communication Services ETF (RSPC US) aims to provide equal-weight exposure to communication services companies primarily from the S&P 500, supplemented to ensure breadth [1] Group 1: Index Methodology - The underlying index starts with the S&P 500, representing U.S. large-cap equities, and includes all constituents classified in the communication services sector under GICS [1] - If fewer than 22 S&P 500 names are eligible during a quarterly rebalance, the index adds the largest communication services companies from the S&P MidCap 400 by float-adjusted market cap until the minimum is met [1] - Mid-cap companies added to meet the 22-stock minimum remain constituents until the next rebalance, even if new S&P 500 names enter the sector [1] Group 2: Rebalancing and Weighting - At each quarterly rebalance in March, June, September, and December, all constituents are set to equal 1/N weights without additional issuer or industry caps [1] - Ongoing maintenance actions from the S&P 500 and S&P MidCap 400 drive most constituent turnover [1]
iShares Exponential Technologies ETF (XT US) - Portfolio Construction Methodology
ETF Strategy· 2026-01-18 08:44
Core Insights - The iShares Exponential Technologies ETF (XT US) targets global companies involved in "exponential" technologies, focusing on those with a free-float market cap greater than USD 300 million and a 3-month average daily trading volume (ADTV) of at least USD 2 million [1] Group 1: Portfolio Construction Methodology - The underlying index prioritizes the top 10 "theme leaders" per theme based on their scores, aiming for a total of 200 constituents through a cross-theme ranking system [1] - The index is float-market-cap weighted with a single-stock cap of 4%, and core exposure to any theme is capped at 25% [1] - At least 90% of the index weight must have a forecasted 5-year revenue exposure of at least 25% to one theme, with annual reconstitution and quarterly rebalancing [1]