FRANKFURT, Germany (October 31, 2024) – MarketVector IndexesTM ("MarketVector") announces the following rule changes effective with the implementation of the quarterly/semi-annual review in December 2024.

1. For the MVIS® Global Future of Food ESG Index (MVFOF) there will be the following rule changes regarding the ESG Filters:

  • A new ESG Filter is added – the sum of Power Generation - Thermal Maximum Percentage of Revenues, Power Generation - Oil Maximum Percentage of Revenues and Power Generation - Gas Maximum Percentage of Revenues is <50%.
  • Thermal Coal Mining - Total Maximum Percentage of Revenues threshold is reduced from <=5% to <=1%.
  • Oil Sands - Total Maximum Percentage of Revenues threshold is reduced from <=5% to <=1%.
  • Tobacco - Revenue Share is no longer considered as an ESG Filter criterion. 
  • Tobacco - Production Maximum Percentage of Revenues is a new ESG Filter Criterion with a 0 threshold.

2. For the BlueStar® Israel Domestic Exposure Index (IDEI), the BlueStar® Israel Global Exposure Index (IGEI) and the BlueStar® Israel Global Index (BLS - 'BIGI') there will be a rule change regarding the implementation of review/rebalancing changes: 

Review Schedule 
OldNew
Changes will be implemented and based on the closing prices as of the third Thursday of March, June, September, and December. If the third Thursday is not a business day, the review will take place on the last business day before the third Thursday. If a security does not trade on the third Thursday of March, June, September, and December, then the last available price for this security will be used. Changes become effective on the next index dissemination day.Changes will be implemented and based on the closing prices as of the third Friday of March, June, September, and December. If the third Friday is not a business day, the review will take place on the last business day before the third Friday. If a security does not trade on the third Friday of March, June, September, and December, then the last available price for this security will be used. Changes become effective on the next index dissemination day.

3. For the MarketVectorTM Total Global Equity Index (MVTGLE) there will be the following rule changes:

  • In exceptional circumstances (e.g. significant market share regarding size/liquidity), companies with a free-float of less than 10% may be considered for inclusion.
Selection Procedure 
OldNew

Upon an index reconstitution, securities included in the eligible universe are selected to the index based on the following procedure. The index targets a coverage of 95% of the free-float market capitalization of the eligible universe of each country. The index aims to cover all major stock exchanges of each country. The following selection procedure is applied on country level for all markets: 

1. All securities in the eligible universe are sorted in terms of free-float market capitalization in descending order. 

2. Securities covering the top 90% of the free-float market capitalization of the eligible universe qualify for selection.

3. Current components between 90% and 98% of the free-float market capitalization of the eligible universe also qualify for selection.

4. If the coverage is still below 95% of the free-float market capitalization of the eligible universe, the largest remaining securities will be selected until both the target coverage and minimum number of components is reached.

5. In case the securities selected to the index do not cover all major local stock exchanges of a given country, at least one security from each not-covered major local exchange will be selected to the index to cover all the major markets within the country. This rule includes the coverage of only one local stock exchange in case only foreign listings are selected. Such securities are selected by applying the above eligibility and selection rules separately to local exchanges only.

 

In case the above selection procedure results in more than 1000 index components for that is not considered as a developed market by MarketVector, an alternative selection procedure is applied for the given country:

1. All securities in the eligible universe are sorted in terms of free-float market capitalization in descending order.

2. Securities that are ranked in the top 800 by the free-float market capitalization of the eligible universe qualify for selection.

3. Current components that are ranked between 800 and 1200 of the free-float market capitalization of the eligible universe also qualify for selection.

4. In case the securities selected to the index do not cover all major local stock exchanges of a given country, at least one security from each not-covered major local exchange will be selected to the index to cover all the major markets within the country. This rule includes the coverage of only one local stock exchange in case only foreign listings are selected. Such securities are selected by applying the above eligibility and selection rules separately to local exchanges only.

5. If the number of selected securities is still below 1000, then the highest ranked remaining securities are selected until 1000 companies are selected.

Upon an index reconstitution, securities included in the eligible universe are selected to the index based on the following procedure. The index targets a coverage of 98% of the free-float market capitalization of the eligible universe of each country. The index aims to cover all major stock exchanges of each country. The following selection procedure is applied on country level for all markets:

1. All securities in the eligible universe are sorted in terms of free-float market capitalization in descending order.

2. Securities covering the top 97% of the free-float market capitalization of the eligible universe qualify for selection.

3. Current components between 97% and 99% of the free-float market capitalization of the eligible universe also qualify for selection.

4. In case the securities selected to the index do not cover all major local stock exchanges of a given country, at least one security from each not-covered major local exchange will be selected to the index to cover all the major markets within the country. This rule includes the coverage of only one local stock exchange in case only foreign listings are selected. Such securities are selected by applying the above eligibility and selection rules separately to local exchanges only.

5. If the coverage is still below 98% of the free-float market capitalization of the eligible universe, the largest remaining securities will be selected until both the target coverage and minimum number of components is reached.

 

In case the above selection procedure results in more than 1200 index components for that is not considered as a developed market by MarketVector, an alternative selection procedure is applied for the given country:

1. All securities in the eligible universe are sorted in terms of free-float market capitalization in descending order.

2. Securities that are ranked in the top 1000 by the free-float market capitalization of the eligible universe qualify for selection.

3. Current components that are ranked between 1000 and 1400 of the free-float market capitalization of the eligible universe also qualify for selection.

4. In case the securities selected to the index do not cover all major local stock exchanges of a given country, at least one security from each not-covered major local exchange will be selected to the index to cover all the major markets within the country. This rule includes the coverage of only one local stock exchange in case only foreign listings are selected. Such securities are selected by applying the above eligibility and selection rules separately to local exchanges only.

5. If the number of selected securities is still below 1200, then the highest ranked remaining securities are selected until 1200 companies are selected.

4. For all equity indexes, the following will apply:

  • Companies listed on the Luxembourg Stock Exchange will not qualify for the index universe.
  • Companies that are related to Luxembourg (i.e., incorporated or headquartered in Luxembourg) but listed on an exchange outside Luxembourg may continue to qualify for the index universe.

 

The amended Index Guide will be available for download at https://marketvector.com/index-guides.

 

Best regards,

MarketVector IndexesTM

Most popular