XHYE

XHYE is part of the first suite of high-yield corporate bond ETFs to target specific market sectors. This fund invests in USD-denominated high-yield corporates in the energy sector. An issuer is considered if it derives at least 50% of its revenue from ownership, operation, development, construction, management, financing, leasing, or sale of energy assets. Eligible bonds must be companies having risk exposure to FX-G10 member countries with at least $250 million outstanding face value. Bonds should have a maturity of at least 18 months at the time of issuance and at least one year to maturity. Holdings are initially market value-weighted, with single issuers capped at 25%. The fund is then grouped into large- and small-cap segments based on the initial weights. Issuers in the small-cap segment are capped at 4.85%, and the aggregate weight of issuers on the large-cap portion is capped at 48%. The index rebalances and reconstitutes monthly.