iShares ESG Advanced High Yield Corporate Bond ETF (HYXF US) – Portfolio Construction Methodology

The underlying Bloomberg MSCI US High Yield Choice ESG Screened Index targets USD high yield corporate bonds from the Bloomberg US Corporate High Yield universe while excluding energy and issuers failing defined ESG standards. Eligibility requires ≥ USD 400mn par outstanding, fixed-rate USD denomination, ≥ 1 year remaining maturity, and non-default speculative-grade ratings per the parent index. Additional MSCI screens exclude UNGC/controversy scores <3 and business involvement in areas such as tobacco, civilian firearms, controversial weapons, gambling, nuclear power, palm oil, and fossil fuels; issuers must have an MSCI ESG Rating ≥ BB. Constituents are market value weighted with a 2% issuer cap, with excess redistributed pro rata. The index rebalances monthly at month-end; additions and deletions follow parent index actions subject to the ESG and size constraints. To explore HYXF 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/HYXF_US