1654 ETF · Daiwa ETF FTSE Blossom Japan Index ETF

The Fund will invest in stocks that are included and scheduled to be included in FTSE BLOSSOM JAPAN INDEX to match the rate of change of NAV per unit of the Fund to that of FTSE BLOSSOM JAPAN INDEX. FTSE Blossom Japan Index is an equity index whose constituents are selected by FTSE International Limited considering ESG (Environmental, Social, Governance) factors, where the companies have excellent abilities to correspond to these factors. FTSE ESG Ratings is determined based on well-defined ESG Standards which is designed to help market participants to be involved in Stewardship and Engagement activities. Indicators for the evaluation of ESG Ratings are selected by specific conditions such as the sector to which business activity itself belongs, and the geography in which such activity is conducted. In addition, it would be reviewed on a regular basis to suit the requirements of the changing corporate behavior, investor needs, interests of society, and so on. In principle, ESG Ratings would be reviewed twice a year in June and December. And accordingly, the index constituents and the weights also would be reviewed based on the ratings and the investable market capitalization, respectively.