Methodology Change | Solactive Metaverse Index | Effective Date 25/02/2022

Today, on the 18/02/2022, Solactive announces the following changes to the methodology of the following index/Indices (the ‘Affected Index/Indices’):

Rationale for Methodology Change

The Affected Indices aim to represent the companies that provide or use innovative technologies to offer products and services around the metaverse. Solactive has determined that the current liquidity and size criteria do not allow for the potential future growth in the metaverse industry. Therefore, to ensure sufficient liquidity, tradability of the index constituent, a robust selection process is proposed. In addition, a single security cap of 10% is proposed to be implemented to limit the exposure to individual index component and to increase the diversification within the index composition.

It was also proposed in the market consultation to do an extraordinary rebalance on the 1st of March 2022 by considering the 25th of February 2022 as the extraordinary Selection Day. However, after the practical consideration, Solactive has decided to do an extraordinary rebalance on the 07th of March 2022. The extraordinary Selection Day remains the same, i.e., 25th of February 2022.

Changes to the Index Guideline

The following Methodology changes are proposed in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):

Section 2.1 Index Universe Requirements

From (old version):

 “[…]

2)              SHARE CLASS MARKET CAPITALIZATION of at least USD 100,000,000 that are not INDEX COMPONENTS on the respective SELECTION DAY and at least USD 80,000,000 for companies that are INDEX COMPONENTS on the respective SELECTION DAY.

3)              AVERAGE DAILY VALUE TRADED of at least USD 1,000,000 over the last three months prior to and including the SELECTION DAY for companies that are not INDEX COMPONENTS on the respective SELECTION DAY and at least USD 800,000 for companies that are INDEX COMPONENTS on the respective SELECTION DAY.

To (new version):

“[…]

2)              SHARE CLASS MARKET CAPITALIZATION of at least USD 200,000,000 that are not INDEX COMPONENTS on the respective SELECTION DAY and at least USD 160,000,000 for companies that are INDEX COMPONENTS on the respective SELECTION DAY.

3)              AVERAGE DAILY VALUE TRADED of at least USD 2,000,000 over the last three months prior to and including the SELECTION DAY for companies that are not INDEX COMPONENTS on the respective SELECTION DAY and at least USD 1,600,000 for companies that are INDEX COMPONENTS on the respective SELECTION DAY.

Section 2.3 Weighting of the Index Components

From (old version):

 “[…]

The last step is to redistribute any excess weight pro-rate to reach an overall weight of 100%.

To (new version):

“[…]

Any excess weight is redistributed pro-rate to reach an overall weight of 100%.

Then, a weight cap is applied for each INDEX COMPONENT by re-distributing any weight which is larger than 10% to the other INDEX COMPONENT proportionally in an iterative manner.

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.