Columbia Research Enhanced Core ETF (RECS US) – Portfolio Construction Methodology

The underlying Beta Advantage Research Enhanced U.S. Equity Index targets a subset of Russell 1000 constituents via a systematic selection that typically retains ~35%–40% of names. From the full Russell 1000 universe, companies rated “1” or “2” by Columbia’s quantitative models on quality, valuation and catalyst are included; all Biotechnology industry constituents are included, and if any GICS sector lacks such ratings, “3”-rated names may be added to maintain sector coverage. Constituents are weighted by market cap, then adjusted so each sector weight, and specifically the Biotechnology industry weight, matches Russell 1000 proportions. The index is reconstituted and rebalanced semi-annually: selection occurs on the third Friday of June and the second Friday of December, with implementation on the fourth Friday of June and the third Friday of December; corporate actions follow FTSE Russell’s event maintenance.

To explore RECS 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/RECS_US