Yes, the shield needs to be on the bottom. The shield does create the sharp horizontal cut off line. For the H4 low beam only the top part of the reflector gets the light. since the low beam led is not at the focus point, and it is reflecting off a mirror (reversal), the top reflection goes down on the road and (dark) bottom of the reflector would have gone up....
The top and bottom parts of our reflectors are missing. This is what helps create a better horizontal beam. Less glare on the road in front of you and less glare for on coming traffic. So the important part of the reflector is horizontal, the Leds should be set to project side to side (left and right) again shield on the bottom. On the F2 the wire hangs off the bottom. I live in a mostly dry climate, so I have left off the rubber boot..... maybe - because I got tired of changing out so many bulbs in my search for the right one.........