Global X MSCI Vietnam ETF (VNAM US) – Portfolio Construction Methodology

The underlying MSCI Vietnam Select 25/50 Index targets liquid, investable exposure to Vietnamese equities while satisfying U.S. regulated investment company concentration limits. It starts from the MSCI Vietnam Index and keeps only constituents whose full market cap meets MSCI’s global minimum size for frontier markets, with additional liquidity tests based on 12-month trading frequency and annual traded value ratio to exclude thinly traded names. Eligible stocks are weighted by free-float market cap, adjusted by a liquidity factor so that lower-turnover securities receive reduced weights. At each review, single-stock weights are capped at 25%, and the combined weight of all constituents individually above 5% is constrained to 50%, forcing a more diversified profile than a pure market-cap approach. The index follows MSCI’s standard quarterly index review calendar, when eligibility screens, liquidity factors and capping constraints are reapplied.

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