iShares MSCI Water Management Multisector ETF (IWTR US) – Portfolio Construction Methodology

The underlying MSCI ACWI IMI Sustainable Water Transition Extended Capped Net Index (USD) targets global large-, mid- and small-cap companies in developed and emerging markets whose businesses are materially tied to water supply, infrastructure, treatment and efficiency. It starts from the MSCI ACWI IMI universe and removes securities failing standard investability, liquidity and foreign-ownership rules. It then applies thematic revenue screens to identify issuers deriving significant revenue from water utilities, distribution, technology, equipment and related environmental services, while excluding controversial business activities and issuers with the most severe ESG controversies or climate-related risks. Eligible constituents are weighted by free-float market cap, with issuer and segment caps limiting concentration across the water-related sub-universes and the broader equity universe. Additional capping keeps overall concentration within UCITS-style 25/50 limits. The index is reconstituted semi-annually and rebalanced quarterly in line with MSCI’s standard review schedule.

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