Rule Changes for MVBDC

1. All stocks in the investable universe are sorted in terms of free-float market capitalization in descending order.
2. Stocks covering the top 85% of the free-float market capitalization of the investable universe qualify for selection.
3. Existing components between the 85th and 98th percentiles also qualify for the index.
4. If the coverage is still below 90% or the number of components in the index is still below 25, the largest remaining stocks will be selected until coverage of at least 90% is reached and the number of stocks equals 25.
5. In case the number of eligible companies is below 25, additional companies are added by the Index Owner’s decision until the number of stocks equals 25.

1. All stocks in the investable universe are sorted in terms of free-float market capitalization in descending order.
2. Stocks covering the top 95% of the free-float market capitalization of the investable universe qualify for selection.
3. Existing components between the 95th and 99th percentiles also qualify for the index.
4. If the number of components in the index is still below 25, the largest remaining stocks will be selected until the number of stocks equals 25.
5. In case the number of eligible companies is below 25, additional companies are added by the Index Owner’s decision until the number of stocks equals 25.

This weighting scheme ensures diversification by assigning weights to components which cannot exceed 20% but still ensures bigger sizes of bigger companies.

1. All index components are weighted by their free-float market capitalization.
2. The largest 3 are grouped together (so called “Large-Weights”). All other companies are grouped together as well (so called “Small-Weights”).
3. The aggregated weighting of the Large-Weights is capped at 45%:

• Large-Weights: If the aggregated weighting of all companies in Large-Weight exceeds 45%, then a capping factor is calculated to bring the weighting down to 45% - at the same time a second capping factor for the Small-Weights is calculated to increase the aggregated weight to 55%. These two factors are then applied to all companies in the Large-Weights or the Small-Weights respectively. Then
• Large-Weights: The maximum weight for any single stock is 20% and the minimum weighting is 5%. If a stock is above the maximum or below the minimum weight, then the weight will be reduced to the maximum weight or increased to the minimum weight and the excess weight shall be redistributed proportionally across all other remaining index constituents in the Large-Weights. Then
• Small-Weights: The maximum weight for any single stock is 4.5%. If a stock is above the maximum weight, then the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across all other remaining index constituents in the Small-Weights.

This weighting scheme ensures diversification by assigning weights to components which cannot exceed 22.5% but still ensures bigger sizes of bigger companies. 

1. All index components are weighted by their free-float market capitalization.  
2. All companies exceeding 5%, but at least the largest 3 and at the maximum the largest 10 companies are grouped together. If the aggregate weight of stocks in this group exceeds 50% then the smallest companies are removed from the group until the group’s aggregate weight is less than or equal to 50%. The aggregate weight of this group may, however, exceed 50% if only 3 stocks are included in this group. The stocks belonging to this group are referred to as “Large-Weights” and all other stocks are referred to as “Small-Weights”.
3. The weight of all companies in the Large-Weights are adjusted by a capping factor that is calculated to bring the aggregate weight of this group to 48%. At the same time the weight of all companies in the Small-Weights are adjusted by a capping factor that is calculated to bring the aggregate weight of this group to 52%. Then

• Large-Weights: The maximum weight for any single stock is 22.5% and the minimum weight is 5%. If a stock is above the maximum or below the minimum weight, then the weight will be reduced to the maximum or increased to the minimum weight and the excess weight shall be distributed proportionally across all other remaining index constituents in the Large-Weights.
• Small-Weights: The maximum weight for any single stock is 4.6%. If a stock is above the maximum, then the weight will be reduced to the maximum weight and the excess weight shall be distributed proportionally across all other remaining index constituents in the Small-Weights.