IQ CBRE NextGen Real Estate ETF (ROOF US) – Portfolio Construction Methodology

The underlying NYLI CBRE NextGen Real Estate Index provides global equity exposure to listed real estate and related infrastructure companies whose assets and revenues are primarily tied to property types aligned with “next generation” secular trends such as logistics facilities, modern industrial, life science and medical office, single-family rental and manufactured housing communities, data centres, cell towers and related digital infrastructure. Eligible securities include common stock, ADRs, GDRs and REITs of companies classified by CBRE as real estate or real-estate-related infrastructure, with a minimum float-adjusted market cap of USD 100 million, at least 90 days of trading history and a 3-month average daily trading value of at least USD 1 million. Companies must derive a majority of net operating income or revenue from qualifying NextGen property types and are grouped into distinct thematic trends, with the index targeting roughly similar aggregate weights by trend. Within each trend, constituents are weighted by free float-adjusted market cap subject to a 10% single-name cap and additional diversification constraints that keep at least three-quarters of index weight in securities individually ≤5%. The index is reconstituted and rebalanced quarterly, ordinarily after the close on the third Friday of March, June, September and December, when eligibility, theme assignment and weights are refreshed.

To explore ROOF 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/ROOF_US