First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT US) – Portfolio Construction Methodology

The underlying Nasdaq CTA Artificial Intelligence and Robotics Index offers global exposure to AI/robotics “Engagers,” “Enablers,” and “Enhancers,” as classified by the Consumer Technology Association. Eligibility requires float ≥20%, three-month ADTV ≥ USD 3m, and free-float market cap ≥ USD 500m for new entrants (USD 450m for continuers). Within each category, securities are ranked by CTA AI Intensity; up to 30 (including ties) per category are selected. The index applies a modified equal-weight scheme: category targets are 60% Engagers, 25% Enablers, and 15% Enhancers, with equal weights within each sleeve; one line per issuer is used. Maintenance removes names failing liquidity/size checks at quarterly review. Reconstitution occurs semi-annually (effective the trading day after the third Friday in March and September), with quarterly rebalances in March, June, September, and December.

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