Xtrackers California Municipal Bond ETF (CA US) – Portfolio Construction Methodology

The underlying ICE AMT-Free Broad Liquid California Municipal Index targets USD-denominated, investment grade, tax-exempt municipal bonds issued by the State of California and its political subdivisions, with interest exempt from U.S. federal income tax and not subject to AMT. It includes general obligation and revenue bonds with fixed coupons (including zero, step-up and step-down structures) and at least one month remaining to final maturity. Eligible issues must have at least USD 25 million currently outstanding and be part of original deals of at least USD 100 million, and must carry an investment grade rating based on the middle of Moody’s, S&P and Fitch where available. The index excludes taxable municipals, bonds from U.S. territories, private placements, Rule 144A securities, floating-rate and variable-rate demand obligations, and securities in default. Constituents are market-value-weighted, with any single issuer capped at 25% at each month-end rebalancing, with excess weight redistributed proportionally.

To explore CA in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/CA_US