Themes Airlines ETF (AIRL US) – Portfolio Construction Methodology

The underlying Solactive Airlines Index provides global developed-markets exposure to listed airline operators. The index universe starts with the Solactive GBS Developed Markets All Cap USD Index, which includes liquid free-float-adjusted common stocks and depositary receipts across large-, mid- and small-cap segments that meet Solactive’s free-float and trading-volume standards. From this universe, companies classified to the airlines industry are selected. On each Selection Day, 20 business days before the Rebalance Day, all eligible airline stocks are ranked by free-float market cap in descending order, and the top 30 become index components. On the same date, constituents receive free-float-market-cap weights that are then constrained with a 4.5% cap per security; excess weight is redistributed pro rata to uncapped names until all constituents satisfy the cap. The index is reviewed and rebalanced quarterly, with changes implemented on the first Wednesday of February, May, August and November, and is calculated in USD.

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