iShares MSCI Min Vol Global ETF (ACWV US) – Portfolio Construction Methodology

The underlying MSCI ACWI Minimum Volatility (USD) Index targets a global large-/mid-cap equity portfolio that minimizes total forecast volatility, using the MSCI ACWI as the eligible universe and Barra risk model covariances. An optimizer selects and weights constituents subject to binding constraints: single-stock weights are capped at the lower of 1.5% or 20× the parent weight; country weights cannot deviate by more than ±5% if the parent country weight is ≥2.5% and are capped at 3× otherwise; sector weights may not deviate by more than ±5%. Exposures to non-volatility style factors are kept within ±0.25 standard deviations versus the parent, and one-way turnover is constrained to ≤10%, with relaxation steps applied only if needed for feasibility. The index reconstitutes semiannually at the May/November reviews and is otherwise maintained via corporate-action adjustments.

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