U.S. Global Jets ETF (JETS US) – Portfolio Construction Methodology

The underlying U.S. Global Jets Index targets global “airline companies,” spanning listed passenger airlines, aircraft manufacturers, airports, terminal services, and airline‐related internet services across developed markets. Eligible names must be exchange-listed, have market cap ≥ USD 100m, and meet a minimum ADVT screen. At each quarterly reconstitution (March, June, September, December), the four largest U.S. passenger airlines by market cap and ADVT, with a secondary tie-break by passenger load factor, each receive a fixed 10% weight; the next eight U.S. or Canadian passenger airlines receive 3% each. Remaining candidates are factor-scored (primary: CFROIC and ADVT; plus sales growth, gross margin, sales yield): the top eight U.S./Canadian companies receive 2% each; the next 10 non-U.S. companies 1% each; and the next 20 non-U.S. companies 0.5% each. Weights float between quarterly reviews; no additional issuer caps apply.

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