Methodology Change | Solactive Global Hydrogen V2 Index | Effective Date 14/02/2025

Today, on the 31/01/2025, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for Methodology Change

Solactive has observed that recent market volatility within the Hydrogen industry has led several major constituents of the Hydrogen v2 index to exceed a 20% weighting. This has created significant challenges for end users of the index, particularly in maintaining UCITS compliance.

During the construction of the index, every effort was made to minimize fluctuations in market activity, including the type of volatility currently seen in the Hydrogen sector. The index undergoes a semi-annual rebalancing and is reweighted semi-annually whenever weight caps outlined in the index guidelines are breached. Specifically, any constituent exceeding 16% is capped at 15% during the semi-annual reweighting process. However, despite these measures, recent market movements have resulted in substantial overconcentration in certain hydrogen stocks, exacerbating compliance challenges for end users.

To address these concerns and assist end users in maintaining compliance, Solactive is proposing the following changes.

Changes to the Index Guideline

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):

From:

This index is not extraordinarily rebalanced.

To:

If the INDEX ADMINISTRATOR determines that the weight of any INDEX COMPONENT, with the exception of the largest-weighted INDEX COMPONENT is greater than 18.5% on any CALCULATION DAY, the INDEX COMPONENT will be capped at a weight of 16%. Moreover, if the weight of the largest-weighted INDEX COMPONENT is greater than 35% on any CALCULATION DAY, the INDEX COMPONENT will be capped at a weight of 31%. The excess weight that results from implementing these constraints is redistributed proportionally in an iterative manner, such that none of the above constraints are breached.

The Solactive Hydrogen v2 Index is adjusted 5 CALCULATION DAYS following the announcement of a breach of the aforementioned weight conditions. This is announced on the Solactive website under the Section “Announcements”, which is available at https://www.solactive.com/news/announcements/, after the CLOSE OF BUSINESS on the day on which the new weights of the INDEX COMPONENTS were determined by the INDEX ADMINISTRATOR. In the event that the extraordinary rebalance is triggered within 5 CALCULATION DAYS of a REBALANCE DAY or ADJUSTMENT DAY, the extraordinary rebalance will not take place.

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.