MarketVectorTM Indexes are investable Indexes, tailor-made for exchange-traded funds (ETFs). The Index concept is built on three key factors: liquidity, pure-play exposure and diversification which, in combination, ensure the creation of investable Index tools, particularly suited to underlie ETFs.
Demanding liquidity criteria are applied when potential Index companies are screened.
Strict and Demanding Liquidity Criteria
Ineligible for inclusion are stocks which have a free-float of less than 10.00%. Each MarketVectorTM Index component must meet the following liquidity requirements:Market Capitalization
- A full market capitalization exceeding 150 million USD;
- A three-month average daily trading volume of at least 1 million USD at the actual review date (1);
- A three-month average daily trading volume of at least 1 million USD at the previous two reviews (2) (3) of an actual review.
- At last 250,000 shares traded per month over the last six months at the actual review date (1);
- At last 250,000 shares traded per month at the previous two reviews (2) (3) of an actual review.
The table shows the results of the liquidity screening for the Index components Gazprom PAO (US80585Y3080, MVIS® Russia Index) and Sberbank PJSC (US80585Y3080, MVIS® Russia Index).
Component Selection Criteria for the MVIS® Russia Index
(example values based on previous Index reviews)
|Full Market Capitalization||USD 150,000,000||USD 58,378,880,000||USD 66,271,930,000|
|Average daily trading volume (1)||USD 1,000,000||USD 45,214,240||USD 71,367,704|
|Average daily trading volume (2)||USD 1,000,000||USD 31,948,716||USD 70,900,280|
|Average daily trading volume (3)||USD 1,000,000||USD 47,148,248||USD 117,743,416|
|Traded shares/month (1)||USD 250,000||USD 175,665,126||USD 121,337,265|
|Traded shares/month (2)||USD 250,000||USD 180,209,799||USD 134,552,806|
|Traded shares/month (3)||USD 250,000||USD 220,454,787||USD 134,098,692|