Methodology

Selection

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.

Equal Weighting

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.

Liquidity

All index constituents must have a minimum total market cap of USD $4 billion and a minimum 3-month daily traded value of USD $2 million.

Diversification

No more than 25% of the index (25 companies) may belong to the same economic sector. REITs are altogether ineligible for selection.

Rebalance Discipline

The index is rebalanced semi-annually, on the third Friday of March and September.