Global X S&P Catholic Values Developed ex-U.S. ETF (CEFA US) – Portfolio Construction Methodology

The underlying S&P Developed ex-U.S. Catholic Values Index provides large-cap developed-market equity exposure outside the United States while applying exclusions aligned with U.S. Conference of Catholic Bishops guidelines. It starts from the S&P EPAC ex-Korea Large Cap Index, which includes float-adjusted large-cap stocks from developed Europe and Asia-Pacific (excluding the U.S. and Korea) that meet minimum free-float and liquidity criteria and typically cover about the top 85% of each market’s capitalization. Companies with material involvement in activities such as abortion-related services, contraceptives, embryonic stem-cell research, adult entertainment, gambling, tobacco, alcohol, controversial weapons, or predatory lending are removed, along with certain ownership-linked exposures. Remaining securities are weighted by float-adjusted market cap, with sector and country exposures kept close to those of the parent index to limit tracking error. The index is rebalanced and reconstituted on the same regular schedule as the S&P EPAC ex-Korea Large Cap Index.

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