iShares FinTech Active ETF (BPAY US) – Portfolio Construction Methodology

The investment approach informing the actively managed iShares FinTech Active ETF seeks total return from global equities linked to financial-technology enablement, investing ≥80% of net assets in equity securities of fintech companies and in derivatives providing equivalent exposure to related risk factors. Security selection combines fundamental and quantitative signals—revenue and earnings growth, estimate revisions, profitability, and relative value—applied across payment processors, banking/credit platforms, insurance technology, market-infrastructure/data, IT services, software, and related categories; non-U.S. listings are permitted, though liquidity and investability screens favor larger, tradable names. Portfolio construction is unconstrained by an index, with position sizes reflecting conviction, liquidity, and risk budgets; active risk is managed through sector/industry and single-name bands and the ability to use derivatives for exposure or efficiency. Rebalancing is ongoing as signals update; trims/sells are triggered by thesis deterioration, adverse revisions, better-ranked replacements, or liquidity changes.

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