Invesco S&P SmallCap Financials ETF (PSCF US) – Portfolio Construction Methodology

The underlying S&P SmallCap 600 Capped Financials & Real Estate Index (USD) provides sector-specific exposure to financials and real estate companies drawn from the S&P SmallCap 600. Parent index constituents are chosen by an index committee from the S&P Total Market Index, targeting market caps near 850 million–3.7 billion USD for initial small-cap inclusion and requiring U.S. domicile, primary U.S. exchange listing, positive GAAP earnings over the latest four quarters and minimum trading liquidity measured by annual dollar value traded relative to float-adjusted market cap. From this universe, all stocks classified in the GICS financials or real estate sectors are included. Constituents are weighted by float-adjusted market cap, then capped so no company exceeds 23% and the aggregate weight of stocks above 4.8% remains at or below 50%, using iterative redistribution. Capping is reapplied quarterly after the third Friday of March, June, September and December, while membership follows ongoing S&P SmallCap 600 maintenance.

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