Description

The MSCI USA Banks 20/35 Capped Index is designed to mirror the performance of a specific segment of the U.S. market. It comprises substantial and medium-sized U.S.-listed corporations exclusively within the banking sector, as defined by the Global Industry Classification Standard (GICS) framework. This universe collectively represents approximately 85% of the free-float market capitalization. Constituents are weighted based on their free-float adjusted market capitalization, though strict caps are enforced: the largest group entity is restricted to a maximum of 35% of the index's total weight, and other individual entities are capped at 20%. A 10% buffer is incorporated into these limits during each scheduled quarterly rebalancing. Beyond these quarterly reviews, an unscheduled rebalancing will occur at the close of any trading day if the 35% or 20% weight limits (excluding the buffer) are exceeded. For comprehensive details regarding the index's selection and weighting methodology, please refer to the MSCI website.