iShares U.S. Insurance ETF (IAK US) – Portfolio Construction Methodology

The underlying Dow Jones U.S. Select Insurance Index provides float-adjusted market-cap exposure to U.S. insurers across life, property & casualty, reinsurance, brokers, and multi-line groups drawn from a broad U.S. equity universe. Eligibility requires classification in insurance-related industry groups and investability criteria typical of S&P DJI’s U.S. equity frameworks; non-ordinary share classes and illiquid lines are excluded. Constituents are weighted by free-float market cap subject to diversification caps that limit single-name concentration and the aggregate weight of larger constituents to control dominance; these caps are reapplied each rebalance. The index rebalances quarterly on a set March/June/September/December schedule, with ongoing corporate-action and share updates. Selection is rules-based rather than committee-discretionary, so membership changes reflect industry reclassifications, listings activity, and the capping algorithm rather than qualitative assessments.

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