ETFB Green SRI REITs ETF (RITA US) – Portfolio Construction Methodology

The underlying FTSE EPRA Nareit IdealRatings Developed REITs Islamic Green Capped Index provides exposure to developed-market equity REITs that satisfy REIT qualification rules, leverage limits, Shariah-based SRI criteria and FTSE EPRA Nareit Green standards. Eligible issuers are exchange-listed developed-market REITs that invest and earn at least 75% in real estate, distribute at least 90% of taxable income, meet share-ownership diversification tests and pass FTSE EPRA Nareit free-float and liquidity screens. REITs are removed if interest-bearing debt exceeds 33% of asset value or if more than 5% of income comes from interest or from tenants in Shariah-prohibited sectors. Remaining REITs are filtered using green scores based on certified buildings and energy-use data, with missing data heavily penalized. Constituents are weighted by free-float market cap with a green tilt, subject to 0.5%–20% single-name caps and a 48% aggregate cap on names individually above 4.5%, and the index is rebalanced and reconstituted quarterly.

To explore RITA 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/RITA_US