KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (KDIV US) – Portfolio Construction Methodology

The underlying S&P Pan Asia Dividend Aristocrats Index offers a yield-weighted portfolio of dividend-growth stocks from the S&P Pan Asia BMI, spanning developed and emerging Asia-Pacific markets. The index starts from the float-adjusted, liquid Pan Asia BMI universe and requires constituents to have paid regular cash dividends without cuts for at least seven consecutive years, with screens to exclude extreme yield outliers and non-sustainable payers. Securities must continue to meet S&P’s free-float market cap and liquidity thresholds at review. At each semi-annual reconstitution (after the last trading day of January and July), eligible stocks are weighted by indicated annual dividend yield, subject to a 5% maximum weight per stock and 30% caps at both sector and country level. The index targets a floating count of roughly 40–100 names, allowing membership to expand or contract with the eligible universe.

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