Global X Clean Water ETF (AQWA US) – Portfolio Construction Methodology

The underlying Solactive Global Clean Water Industry Index provides global equity exposure to companies deriving substantial revenue from clean water activities. The universe consists of developed and emerging market stocks (excluding India, with China A-shares eligible via Stock Connect) that are compliant with United Nations Global Compact principles and have free float of at least 10% or free-float market cap of at least USD 1 billion. New constituents must have share-class market cap ≥USD 200 million and six-month ADVT ≥USD 2 million, with USD 160 million and USD 1.4 million thresholds for existing members. Companies must generate at least 50% of revenue from industrial water treatment and recycling, water purification and conservation, storage, transportation and distribution infrastructure, metering, or water-focused equipment and consulting. Up to 40 constituents are free-float-market-cap weighted with individual weights constrained between 0.3% and 8%; positions above 4.5% are collectively capped at 40% of index weight and remaining holdings are each capped at 4.5%. The index is rebalanced semi-annually with additional semi-annual reviews for Global Compact compliance.

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