Methodology Change | Solactive Wealthsimple Indices | Effective Date 05/05/2020
Today, on the 04/05/2020, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):
|
NAME |
RIC |
ISIN |
|
Solactive Wealthsimple DM ex NA Socially Responsible Factor Index PR |
.SOLDSRFP |
DE000SLA9857 |
|
Solactive Wealthsimple DM ex NA Socially Responsible Factor Index NTR |
.SOLDSRFN |
DE000SLA9865 |
|
Solactive Wealthsimple DM ex NA Socially Responsible Factor Index TR |
.SOLDSRFT |
DE000SLA9873 |
|
Solactive Wealthsimple North America Socially Responsible Factor Index PR |
.SOLNARFP |
DE000SLA9881 |
|
Solactive Wealthsimple North America Socially Responsible Factor Index NTR |
.SOLNARFN |
DE000SLA9899 |
|
Solactive Wealthsimple North America Socially Responsible Factor Index TR |
.SOLNARFT |
DE000SLA99A6 |
Rationale for methodology change
The indices aim to weight securities according to sector volatility and invest most into sectors that experience low volatility. Currently the calculation of the sector volatility ignores the correlation among securities, which means sector volatility is not represented in an accurate way. In order to have an accurate figure covariances among securities need to be considered. Therefore, the following changes are proposed to the Index Guideline.
Changes to the Index Guideline
Please refer to the document attached for the changes made to the index guideline.
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.