SoFi Next 500 ETF (SFYX US) – Portfolio Construction Methodology

The underlying Solactive SoFi US Next 500 Growth Index provides growth-tilted exposure to U.S. equities immediately below the largest 500 names. The universe is the Solactive US Broad Market Index of roughly the 3,000 largest U.S. companies; from this, current constituents of the Solactive SoFi US 500 Growth Index are removed and the largest 600 remaining securities by free-float market cap are preselected. Existing index members within this band are kept first as a 20% buffer, then additional stocks are added in descending size until 500 constituents are reached, typically capturing upper mid-cap issuers just below the mega- and large-cap segment. Initial weights are proportional to free-float market cap. Net-income growth, sales growth and forward net-income growth are winsorized at the 2nd and 98th percentiles, standardized, averaged into a composite growth z-score and transformed into a positive scaling factor that over- or underweights each stock relative to its cap weight. The index is reconstituted and reweighted annually on the first Wednesday of May based on data observed 10 business days earlier.

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