iShares U.S. Regional Banks ETF (IAT US) – Portfolio Construction Methodology

The underlying Dow Jones U.S. Select Regional Banks Index targets U.S.-listed banks classified in GICS as regional banks, drawn from the Dow Jones U.S. Banks universe after applying free-float and liquidity screens. Constituents are float-adjusted market cap weighted with explicit concentration controls: any single company weight is capped at 22.5%, and additional aggregate capping is applied so that constituents above 4.5% do not collectively dominate the index; excess weight is iteratively redistributed to uncapped names. Eligibility requires continued classification in the regional banks sub-industry; diversified money-center banks are excluded. The index follows the corporate-action and float-update policies of S&P Dow Jones Indices, with quarterly reweighting to reapply caps and reflect share/float changes. Rebalancing occurs on the standard quarterly schedule, aligning with the Select Sector/Specialty series.

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