Global X MSCI Colombia ETF (GXG US) – Portfolio Construction Methodology

The underlying MSCI All Colombia Select 25/50 Index delivers float-adjusted market-cap exposure to the Colombian equity universe while enforcing U.S. regulated-investment-company diversification limits. Starting from the MSCI All Colombia Index, it applies liquidity screens that admit nonmembers only if their 6-month annualized traded value is ≥USD 25 million or trading frequency is ≥95%, with lower continuation thresholds for current constituents; if fewer than 25 securities qualify, additional Colombian listings are added in descending free-float rank until the count is restored. Standard MSCI size, float and foreign-ownership investability rules apply, so the index generally spans large-, mid- and higher-quality small-caps. At each quarterly 25/50 review (February, May, August, November), no single issuer group may exceed 22.5% and the aggregate weight of issuers above 4.5% is capped at 45%, preserving RIC compliance without straying far from Colombian market-cap structure.

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