Methodology Change | Solactive Global Semiconductor Top 4 Plus Index | Effective Date 09/07/2024

Today, on the 01/07/2024, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices):

NAME	RIC	ISIN
Solactive Global Semiconductor Top 4 Plus Index PR	.SOGLSEMP	DE000SL0G185
Solactive Global Semiconductor Top 4 Plus Index NTR	.SOGLSEMN	DE000SL0G193
Solactive Global Semiconductor Top 4 Plus Index GTR	.SOGLSEMT	DE000SL0G2A3

Rationale for Methodology Change

====================================================

Solactive has determined decided to apply adjustments to the respective indices to further enhance the alignment of the selection process with its scope.

Solactive adds a criterion in the selection process detailed in section 2.2: the company listed on the Korean exchange with the highest Free Float Market Capitalization within one of the four categories (Memory Semiconductors, Non-memory Semiconductors, Foundry Services, Semiconductor Equipment) will automatically be designated as the industry leader for its specific category.  The industry leader from each category will receive a weight of 20%. This addition aims to enhance regional diversification within the index composition.

Additionally, Solactive excludes the RBICS Industry “Diversified Technology Hardware” from the Memory Semiconductors category.

Changes to the Index Guideline

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The following Methodology changes will be implemented in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):

Section 2.2 Selection of the Index Components

From:

(…)

• All companies are ranked within their index category on their Free Float Market Capitalization in a descending order. The top company from the categories Memory Semiconductors, Non-memory Semiconductors, Foundry Services and Semiconductor Equipment are selected.
• All remaining securities are re-ranked based on their Free Float Market Capitalization in a descending order. The highest-ranked companies from all categories above are selected to have a total number of Index Constituents of 10 securities.

The selection of the Index Components is fully rule-based and the Index Administrator cannot make any discretionary decision.

To:

(…)

• All companies are ranked within their respective category (Memory Semiconductors, Non-memory Semiconductors, Foundry Services, and Semiconductor Equipment) based on their Free Float Market Capitalization in descending order.

First, the company listed on the Korean exchange with the highest Free Float Market Capitalization that falls under one of these four categories is identified. This company automatically becomes the industry leader for its specific category.

The industry leaders for the three remaining categories are then selected based on their Free Float Market Capitalization, following the initial ranking within each category.

• All remaining securities are re-ranked based on their Free Float Market Capitalization in a descending order. The highest-ranked companies from all categories above are selected to have a total number of Index Constituents of 10 securities.

The selection of the Index Components is fully rule-based and the Index Administrator cannot make any discretionary decision.

Section 2.3 Weighting of the Index Components

From:

(…)

• The top company by Free Float Market Capitalization from the categories Memory Semiconductors, Non-memory Semiconductors, Foundry Services and Semiconductor Equipment receives a weight of 20%.

(…)

To:

(…)

• The industry leaders from the categories Memory Semiconductors, Non-memory Semiconductors, Foundry Services and Semiconductor Equipment receives a weight of 20%.

(…)

 

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Indices. The amended version of the index guideline will be available on the effective date.