NYLI Global Equity R&D Leaders ETF (WRND US) – Portfolio Construction Methodology

The underlying NYLI Global Equity R&D Leaders Index provides global equity exposure to companies with the highest one-year research and development spending. The universe is the FTSE All-World Index, excluding specified emerging-market exchanges. Using standardized FactSet data, the index sums each company’s latest four quarters (or latest annual) R&D expense in USD and ranks the universe by this total. At each quarterly reconstitution, the top 200 names enter and are weighted in proportion to their R&D spending share of the selected set. Single-stock weights are capped at the greater of 5% or the stock’s weight in the FTSE All-World Growth Index plus 2 percentage points, and sector weights at the greater of 30% or the sector’s growth-index weight plus 5 points. U.S. company weight in aggregate is limited to 55%. Reconstitution and rebalancing occur quarterly, effective from the first business day of the next month.

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