Emerging Markets Internet & Ecommerce ETF (EMQQ US) – Portfolio Construction Methodology

The underlying EMQQ The Emerging Markets Internet Index offers exposure to publicly traded Internet and ecommerce companies serving emerging markets. Constituents include local listings plus ADRs/GDRs that derive ≥50% of revenue from Internet/ecommerce activities such as online retail, marketplaces, search, social media, digital payments, online video/gaming, and travel. Investability screens require free-float market cap ≥USD 1bn at inclusion (≥USD 800m for ongoing), three-month ADTV ≥USD 1m, and exclusion of shares restricted by control groups or foreign ownership limits. The index uses modified float-adjusted market-cap weighting with an 8% single-name cap and an iterative constraint so the aggregate weight of >5% positions does not exceed 50% (progressive caps at 8%, 7.5%, 7%, etc., as needed). Reconstitution and rebalance occur semi-annually in June and December.

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