iShares ESG Advanced MSCI USA ETF (USXF US) – Portfolio Construction Methodology

The underlying MSCI USA Choice ESG Screened Index (USD) provides free-float market-cap-weighted exposure to MSCI USA large- and mid-caps while applying extensive exclusions. Companies are removed for involvement with controversial, civilian, and nuclear weapons; tobacco (producers and ≥5% aggregate revenue from related activities); fossil-fuel extraction; and thermal-coal power. Additional screens exclude firms failing UN Global Compact principles, those with Red-Flag ESG controversies (MSCI ESG Controversies score = 0), or those lacking controversies coverage. The universe is reviewed quarterly in line with MSCI’s standard index review calendar (effective last business day of February, May, August, and November); additions generally occur only at scheduled reviews, with ongoing event treatment designed to minimize turnover. Weights float with free float-adjusted market cap; no optimization or issuer caps are applied in this variant. (BlackRock)

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