Invesco S&P Global Water Index ETF (CGW US) – Portfolio Construction Methodology

The underlying S&P Global Water Index targets 100 developed-market companies tied to water activities and splits membership 50/50 between Water Utilities & Infrastructure and Water Equipment & Materials. Eligibility requires ≥ USD 250m total market cap, ≥ USD 100m float-adjusted market cap, and three-month ADVT ≥ USD 1m (≥ USD 0.5m for existing members). Each company receives a theme exposure score (1.0, 0.75, or 0.5) that shapes selection and weights. Within a 50/50 cluster structure, constituents are float-adjusted-market-cap weighted subject to tight caps: exposure-score 1.0 names are capped at 8%, 0.75 at 6%, and 0.5 at 4%; the sum of all names >4.5% cannot exceed 40%; and any stock’s weight is also limited to five times its liquidity weight to preserve capacity. The index reconstitutes and rebalances semiannually.

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