XC

XC offers broad exposure to companies from developing countries, excluding China. The fund is designed around the premise that private corporations outperform firms controlled by governments. The fund excludes state-owned enterprises (SOEs) and companies listed or incorporated in China. The fund defines an SOE as one with more than 20% government ownership. The selection universe starts with the emerging market companies from across various sectors that meet market-cap, liquidity, and tradability requirements. The fund then screens out all SOEs. In addition, certain ESG criteria are used to filter securities that do not meet guidelines of the United Nations Global Compact Principles. Holdings are weighted by market capitalization, subject to adjustments relative to country and sector weights prior to the removal of SOEs. The index is reconstituted and rebalanced annually.