Description

This ETF seeks to replicate the returns of the MSCI EUROPE MATERIALS SCREENED 20/35 index, which is composed of large and mid-sized companies located in developed European nations. All constituent firms operate exclusively within the materials sector, as defined by the Global Industry Classification Standard (GICS). Holdings are weighted by their free-float adjusted market capitalization, subject to specific capping rules: the largest group entity is limited to 35% of the index, while all other group entities are capped at 20%. A 10% buffer is applied to these limits during both scheduled and any required monthly ad-hoc rebalancing. Moreover, the index applies strict environmental, social, and governance (ESG) screens. It excludes companies involved in controversial weapons, those with an MSCI ESG Rating of 'CCC' or that are unrated, and those generating revenue from specific activities including tobacco, various conventional and nuclear weapons, civilian firearms, thermal coal, unconventional or arctic oil and gas extraction, and palm oil. Any issuer with an MSCI Controversies Score of zero is also omitted. A key characteristic of this index is its reduced greenhouse gas intensity compared to its parent benchmark. Comprehensive details regarding the index's construction and methodology can be found on msci.com.