First Trust Indxx NextG Fund (NXTG US) – Portfolio Construction Methodology

The underlying Indxx 5G & NextG Thematic Index offers global equity exposure to companies materially engaged in 5G and next-generation cellular technologies. Eligible securities must have ≥USD 500m market cap, ≥6-month ADTV of USD 2m (USD 1m for emerging-market listings), trading on ≥90% of the last six months (IPO allowance), and ≥10% free float. Indxx classifies the universe into two sub-themes: 5G Infrastructure & Hardware (e.g., tower and data-center REITs, equipment makers, testing/validation software, handset OEMs) and Telecommunications Service Providers operating mobile networks. Up to the largest 100 names by market cap are selected; weights are allocated 80% to Infrastructure & Hardware and 20% to Service Providers, with equal weighting within each bucket. The index reconstitutes and rebalances semi-annually on its stated schedule, with standard corporate-action maintenance between rebalances.

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