Base Date: November 22, 2002
No. of Components: 40
Minimum Market Cap: USD $100 million
Minimum Daily Avg. Liquidity: USD $2 million
Sector Limit: N/A
Geographic Exposure: United States
Rebalance Frequency: Quarterly
Underlying Universe: Companies domiciled in the North America, excluding Canada, listed in U.S. exchanges
All index constituents are selected on the basis of their fundamental strength as measured by MarketGrader’s overall grade. Built on a scale between 0 and 100, our Overall Grade is based on our 24 fundamental indicators, which are broken down into four analytical categories: Growth, Value, Profitability and Cash Flow. All of our indicators and our overall grades are calculated daily for all companies under coverage. REITs are altogether ineligible for selection.
All index constituents are equally weighted every time the index is rebalanced. No weight modifications or adjustments are made to the portfolio between rebalance periods.
All index constituents must have a minimum total market cap of USD $100 million and a minimum 3-month daily traded value of USD $2 million. At least 25% of all constituents (10 companies) must have a minimum total market cap of USD $3 billion.
The index is rebalanced quarterly, on the third Friday of February, May, August and November.
The MarketGrader Financials Index seeks to follow the most fundamentally sound companies with the best growth prospects in the Financial sector in the United States. Since its constituents are equally weighted the index gives each company an equal opportunity to contribute to the performance of the portfolio regardless of size. It was designed to offer investors who follow market cap weighted benchmarks an alternative way to capture the growth among financial stocks in the world’s largest economy and deepest financial market.
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