Real Estate Select Sector SPDR Fund (XLRE US) – Portfolio Construction Methodology

The underlying Real Estate Select Sector Index delivers float-adjusted, market-cap-weighted exposure to S&P 500 companies classified in GICS real estate, excluding mortgage REITs. Eligibility is strictly limited to current S&P 500 members meeting the sector definition; daily maintenance reflects corporate actions and classification changes in the parent. Weighting applies sector capping to control concentration: any single constituent is capped at 23%, and the aggregate weight of all constituents each above 4.8% cannot exceed 50%; excess weight is proportionally redistributed and iterated until constraints are met. The index rebalances quarterly, effective after the close following the third Friday of March, June, September, and December, aligning with the S&P 500 quarterly reweighting. No additional liquidity screens or buffer bands beyond the parent are applied; turnover is primarily driven by S&P 500 membership and GICS changes.

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