Democracy International Fund ETF (DMCY US) – Portfolio Construction Methodology

The underlying Democracy Investments International Index provides a democracy-tilted version of a broad ex-US large- and mid-cap equity universe. It uses the Solactive GBS Global Markets ex US Index as its full constituent set, retaining all developed and emerging market stocks outside the United States that satisfy Solactive’s size and liquidity screens for large and mid caps. Securities are not reselected; instead the index reweights each company by combining its float-adjusted market cap with a country-of-risk democracy score derived from the Economist Democracy Index, boosting weights for higher-scoring democracies and cutting exposure to lower-scoring or authoritarian regimes. Country weights are therefore materially reshaped while maintaining the original sector and stock list. The index is reviewed and rebalanced quarterly, when democracy scores and market caps are refreshed and new Solactive constituents, if any, are incorporated with democracy-adjusted weights.

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