Columbia Research Enhanced Emerging Economies ETF (ECON US) – Portfolio Construction Methodology

The underlying Beta Advantage Research Enhanced Solactive Emerging Economies Index targets large- and mid-cap equities from emerging markets while tilting toward companies with stronger quality, value and catalyst characteristics. The index universe consists of constituents of the Solactive GBS Emerging Markets Large & Mid Cap USD Index, which covers approximately the largest 85% of each emerging market by free-float market cap, using 0–85% cumulative free-float thresholds with 80%/90% buffers to maintain the large-and-mid bucket. Eligible securities must meet minimum liquidity (new entrants generally require ≥USD 1,000,000 ADVT and a liquidity ratio of at least 0.3%) and free-float (typically ≥10%, with waivers only for very large free-float market caps) and observe foreign-ownership limits. A Columbia Threadneedle research overlay removes the most unfavorably scored stocks on proprietary quality, value and catalyst models, then reweights remaining names by foreign-ownership–adjusted free-float market cap while controlling country, region, sector and single-stock concentrations. The index is reconstituted and rebalanced semi-annually, in May and November, based on data observed around 20 business days before each effective date.

To explore ECON 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/ECON_US