Invesco KBW Property & Casualty Insurance ETF (KBWP US) – Portfolio Construction Methodology

The underlying KBW Nasdaq Property & Casualty Index targets U.S. insurers primarily engaged in property & casualty insurance. Eligible securities are common stocks listed on NYSE/Nasdaq/Cboe, seasoned ≥3 months, with free float ≥20%, monthly ADTV ≥100,000 shares, a trailing-30-day average price ≥USD 2.00, listed-options eligibility, and one line per issuer; initial inclusion also requires market cap ≥ the smallest current member. Ongoing eligibility is reviewed quarterly with a continued price floor of USD 2.00. The index uses modified market-cap weighting with a quarterly rebalance: at each review, no constituent may exceed 8% and at most five names can be at that cap; any others above 4% are capped at 4%, with excess redistributed pro rata. Rebalancing uses reference data at month-end of Feb/May/Aug/Nov and is effective after the third Friday of Mar/Jun/Sep/Dec.

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