First Trust S&P International Dividend Aristocrats ETF (FID US) – Portfolio Construction Methodology

The underlying S&P International Dividend Aristocrats Index targets all non-U.S. constituents of the S&P Global Dividend Aristocrats Index, i.e., companies in the S&P Global BMI that have maintained or raised regular dividends for at least 10 consecutive years and currently satisfy dividend-sustainability tests of payout ratio ≤100% and indicated dividend yield ≤10%. Eligible stocks, including ADRs/GDRs, must have free-float market cap of at least USD 1 billion and three-month ADTV of at least USD 5 million; existing members can fall modestly below to stay. Securities are dividend-yield weighted subject to a 3% single-stock cap and 30% country and GICS sector caps to prevent overconcentration. The index is fully reconstituted each January and reweighted in July, with ongoing monthly reviews to drop constituents that omit or cut dividends.

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