First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN US) – Portfolio Construction Methodology

The underlying Nasdaq Clean Edge Green Energy Index provides broad U.S. clean-energy exposure by including every security that meets sector, size, and liquidity screens. Issuers must be classified by Clean Edge as manufacturers, developers, distributors, or installers across renewable generation, energy storage/conversion (including EVs, hydrogen, fuel cells), energy intelligence/efficiency, and advanced materials; they must derive ≥50% of revenue from clean-energy/low-carbon activities or show substantial exposure. Securities must be listed on Nasdaq, NYSE, NYSE American, or Cboe BZX; have market cap ≥ USD 150m, 3-month ADTV ≥ 100,000 shares, price ≥ USD 1, and at least three months’ trading history; one line per issuer. Weighting is modified market cap: no constituent >8%, and only the five largest by market cap may exceed 4%. Reconstitution occurs semiannually (March/September); rebalancing is quarterly (March/June/September/December).

To explore QCLN in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/QCLN_US