Description

This exchange-traded fund (ETF) seeks to replicate the performance of a specific index, with its constituents drawn from the Solactive GBS Developed Markets ex North America Large & Mid-Cap Index. Its core objective involves filtering out companies that exhibit subpar Environmental, Social, and Governance (ESG) performance from a pool of mid to large-capitalization equities within developed markets, excluding North America. The remaining eligible companies are then assessed using a dual criteria system: a multi-factor evaluation, which averages individual momentum, value, and quality scores, and a separate carbon intensity metric. Firms landing in the lowest quartile for both these criteria are subsequently excluded, with the remainder being incorporated into the benchmark index. Individual components are weighted based on their inverse-volatility calculated over a three-year span, applying this method both to single stocks and across entire sectors. To ensure diversification, individual stock weightings are capped at 2%, and no single country's exposure may exceed 30%. The index undergoes rebalancing on a quarterly schedule.