Names Rule Changes

Old

The index only includes companies with at least 50% (25% for current components) of their revenues from digital assets projects or projects that have the potential to generate at least 50% of their revenue from the digital assets industry when fully developed, including companies that:

• operate digital asset exchanges or payment gateways,
• engage in mining of digital assets,
• provide software, equipment, technology, or services to the digital assets industry, 
• provide digital asset infrastructure, and/or
• facilitate commerce with the use of digital assets.

This may also include those companies which own a material amount of digital asset, or otherwise generate revenues related to digital asset operations.

New

The index only includes companies with at least 50% (25% for current components) of their revenues/assets from digital assets projects, including companies that:

• operate digital asset exchanges or payment gateways, 
• engage in mining of digital assets, 
• provide software, equipment, technology, or services to the digital assets industry,
• provide digital asset infrastructure, and/or
• facilitate commerce with the use of digital assets. 

This may also include those companies which own a material amount of digital asset, or otherwise generate revenues related to digital asset operations.

Old

The index only includes companies with at least 50% (25% for current components) of their revenues from gold and/or silver:

• mining, 
• royalties or streaming, and/or
• with mining projects that have the potential, when developed, to generate at least 50% of their revenues from gold and/or silver.

New

The index only includes companies with at least 50% (25% for current components) of their 

• revenues from gold and/or silver: 
  • mining, 
  • royalties, and/or 
  • streaming
• mining mineral resources from gold and/or silver.

Old

The index only includes companies with at least 50% (25% for current components) of their revenues from: 

• mining, 
• refining, 
• recycling, and/or 
• with mining projects that have the potential, when developed, to generate at least 50% of their revenues 

from a combination of metals and elements (referred to as Clean-Tech Metals). 

The following table provides the list of Clean-Tech Metals. The list of Clean-Tech Metals is reviewed on an annual basis. Updates are announced in July and implemented in the following September review: 

Metals/ Minerals Cerium Cobalt Columbium Copper Dysprosium Erbium Europium Holmium Indium Iridium Lanthanum Lithium Lutetium Manganese Molybdenum Natural Graphite Neodymium Nickel Niobium Osmium Palladium Platinum Praseodymium Rhenium Rhodium Ruthenium Samarium Scandium Terbium Thulium Tin Vanadium Ytterbium Yttrium Zinc Zircon Zirconium

New

The index only includes companies with at least 50% (25% for current components) of their 

• revenues from: 
  • mining, 
  • refining, 
  • recycling, and/or 
• mining mineral resources

from a combination of metals and elements (referred to as Clean-Tech Metals). 

The following table provides the list of Clean-Tech Metals. The list of Clean-Tech Metals is reviewed on an annual basis. Updates are announced in July and implemented in the following September review: 

Metals/ Minerals Cerium Cobalt Columbium Copper Dysprosium Erbium Europium Holmium Indium Iridium Lanthanum Lithium Lutetium Manganese Molybdenum Natural Graphite Neodymium Nickel Niobium Osmium Palladium Platinum Praseodymium Rhenium Rhodium Ruthenium Samarium Scandium Terbium Thulium Tin Vanadium Ytterbium Yttrium Zinc Zircon Zirconium

Old

The index only includes companies with at least 50% (25% for current components) of their revenues from: 

• mining, 
• refining, 
• recycling, and/or 
• with mining projects that have the potential, when developed, to generate at least 50% of their revenues 

from a combination of rare earth/strategic metals including:

Minor Metals/ Minerals Rare Earth Metals / Minerals Antimony Manganese Cerium Terbium Arsenic Molybdenum Dysprosium Thulium Beryllium Niobium = Columbium Erbium Ytterbium Bismuth Rhenium Europium Yttrium Cadmium Selenium Gadolinium Chromium Strontium Holmium Cobalt Tantalum Lanthanum Gallium Tellurium Lutetium Germanium Thallium Neodymium Hafnium Titanium Praseodymium Indium Tungsten Promethium Lithium Vanadium Samarium Magnesium Zircon and Zirconium Scandium

New

The index only includes companies with at least 50% (25% for current components) of their 

• revenues from: 
  • mining, 
  • refining, 
  • recycling, and/or 
• mining mineral resources

from a combination of rare earth/strategic metals including:

Minor Metals/ Minerals Rare Earth Metals / Minerals Antimony Manganese Cerium Terbium Arsenic Molybdenum Dysprosium Thulium Beryllium Niobium = Columbium Erbium Ytterbium Bismuth Rhenium Europium Yttrium Cadmium Selenium Gadolinium Chromium Strontium Holmium Cobalt Tantalum Lanthanum Gallium Tellurium Lutetium Germanium Thallium Neodymium Hafnium Titanium Praseodymium Indium Tungsten Promethium Lithium Vanadium Samarium Magnesium Zircon and Zirconium Scandium

Old

The index only includes companies with at least 50% (40% for current components) of their revenues from:

• uranium mining, 
• uranium mining projects that have the potential to generate 50% of the companies’ revenue when developed, 
• construction, engineering and maintenance of nuclear power facilities and nuclear reactors,
• production of electricity from nuclear sources, and/or
• equipment, technology, or services to the nuclear power industry.

New

The index only includes companies with at least 50% (40% for current components) of their 

• revenues from:
  • uranium mining, 
  • construction, engineering and maintenance of nuclear power facilities and nuclear reactors,
  • production of electricity from nuclear sources, and/or
  • equipment, technology, or services to the nuclear power industry.
• mining mineral resources from uranium.

Old

The index only includes companies with at least 50% (25% for current components) of their revenues from the following activities and are categorized into the following ”tiers” which are referred to in section 2.2 and 2.3: 

• Agriculture, including: 
  • agrichemicals and fertilizers,
  • seeds and traits, 
  • farm/irrigation equipment and farm machinery,
  • aquaculture and fishing,
  • livestock, 
  • cultivation and plantations (including grain, oil palms, sugar cane, grapevines etc.),
  • trading of agricultural products, and/or
  • agriculture-related innovations such as plant-based meat and dairy alternatives. 
• Energy, including:
  • upstream operations, 
  • midstream operations, 
  • downstream operations,
  • oil and gas industry related equipment, and/or 
  • oil and gas industry related services.

Companies involved in coal mining and utilities that generate their major revenues through nonrenewable energy sources are excluded. 

• Renewable Energy, including:
  • operational activities and generation of energy through sustainable energy sources, 
  • development and provision of technologies and services associated with the creation or storage of renewable energy, including: solar, wind, hydrogen, fuel cells, waste-to-energy, biofuels, geothermal, and/or hydro.
  • utilities that use alternative energy sources, excluding nuclear power.
• Industrial Metals, including:
  • mining, refining or recycling or with mining projects that have the potential to generate at least 50% of their revenues from a combination of: nickel, uranium, ferrous metals, copper, and/or aluminum.
• Precious Metals, including:
  • mining, royalties, streaming or with mining projects that have the potential to generate at least 50% of their revenues from: gold, silver, palladium, platinum, and/or diamonds. 
• Forest and Paper Products, including: 
  • production of timber, paper, and paper-based containers, 
  • forestry related services such as logging and sawmills, 
  • sustainable forest management, and/or 
  • integrated companies involved in the development of paper-based packaging solutions or the manufacturing of paper products.

New

The index only includes companies with at least 50% (25% for current components) of their revenues from the following activities and are categorized into the following ”tiers” which are referred to in section 2.2 and 2.3: 

• Agriculture, including: 
  • agrichemicals and fertilizers, 
  • seeds and traits, 
  • farm/irrigation equipment and farm machinery, – aquaculture and fishing,
  • livestock, 
  • cultivation and plantations (including grain, oil palms, sugar cane, grapevines etc.),
  • trading of agricultural products, and/or
  • agriculture-related innovations such as plant-based meat and dairy alternatives. 
• Energy, including: 
  • upstream operations, 
  • midstream operations, 
  • downstream operations,
  • oil and gas industry related equipment, and/or 
  • oil and gas industry related services.

Companies involved in coal mining and utilities that generate their major revenues through nonrenewable energy sources are excluded. 

• Renewable Energy, including:
  • operational activities and generation of energy through sustainable energy sources, 
  • development and provision of technologies and services associated with the creation or storage of renewable energy, including: solar, wind, hydrogen, fuel cells, waste-to-energy, biofuels, geothermal, and/or hydro.
  • utilities that use alternative energy sources, excluding nuclear power.
• Industrial Metals, including:
  • mining, refining or recycling or mining mineral resources from a combination of: nickel, uranium, ferrous metals, copper, and/or aluminum.
• Precious Metals, including: 
  • mining, royalties, streaming or mining mineral resources from a combination of: gold, silver, palladium, platinum, and/or diamonds. 
• Forest and Paper Products, including: 
  • production of timber, paper, and paper-based containers, 
  • forestry related services such as logging and sawmills, 
  • sustainable forest management, and/or 
  • integrated companies involved in the development of paper-based packaging solutions or the manufacturing of paper products.

Old

The index only includes companies with at least 50% (25% for current components) of their revenues from the following activities and are categorized into the following ”tiers” which are referred to in sections 2.2 and 2.3: 

• Office REITs (excluding medical and life science offices) or 
• Other commercial REITs (including industrial or retail real estate)

New

The index only includes companies with at least 50% (25% for current components) of their revenues from the following activities and are categorized into the following ”tiers” which are referred to in sections 2.2 and 2.3: 

• Office REITs (excluding medical and life science offices) or 
• Other commercial REITs (including industrial or retail real estate or Office REITs with a revenue between 25% to 50%)

Old

Upon an index rebalance, components selected to the index will be weighted according to a modified float-adjusted market cap weighting strategy: 

1. All components are ranked by their free-float market capitalization. The maximum weight for any single security is 8%. If a security exceeds the maximum weight, then the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across all other index constituents. This process is repeated until no securities have weights exceeding the respective maximum weight. 

2. The 8%-cap weighting scheme will be applied to the largest security and the excess weight after each step shall be redistributed across all other (uncapped) securities in the index on a proportional basis: 

• If the largest two securities exceed 8%, both will be capped at 8%. 
• If the 3rd largest security exceeds 7%, it will be capped at 7%. 
• If the 4th largest security exceeds 6.5%, it will be capped at 6.5%. 
• If the 5th largest security exceeds 6%, it will be capped at 6%. 
• If the 6th largest security exceeds 5.5%, it will be capped at 5.5%. 
• If the 7th largest security exceeds 5%, it will be capped at 5%. 
• If any other security exceeds 4.5%, it will be capped at 4.5%.

New

Upon an index rebalance, components selected to the index will be weighted according to a modified float-adjusted market cap weighting strategy: 

1. All components are ranked by their free-float market capitalization. The maximum weight for any single security is 8%. If a security exceeds the maximum weight, then the weight will be reduced to the maximum weight, and the excess weight shall be redistributed proportionally across all other index constituents. This process is repeated until no securities have weights exceeding the respective maximum weight. 

2. The 8%-cap weighting scheme will be applied to the largest security and the excess weight after each step shall be redistributed across all other (uncapped) securities in the index on a proportional basis: 

• If the largest two securities exceed 8%, both will be capped at 8%. 
• If the 3rd largest security exceeds 7%, it will be capped at 7%. 
• If the 4th largest security exceeds 6.5%, it will be capped at 6.5%. 
• If the 5th largest security exceeds 6%, it will be capped at 6%. 
• If the 6th largest security exceeds 5.5%, it will be capped at 5.5%. 
• If the 7th largest security exceeds 5%, it will be capped at 5%. 
• If any other security exceeds 4.5%, it will be capped at 4.5%.

In case the aggregated weight of all index components with less than 50% exposure to the activities outlined in section 1.1.1 exceeds 20%, a weighting cap factor will be applied to ensure the aggregated weight of such index components does not exceed 20%. The excess weight shall be proportionally redistributed among the uncapped index components with more than 50% exposure to the activities outlined in section 1.1.1.

Old

Upon an index rebalance, components selected to the index will be weighted according to a modified float-adjusted market cap weighting strategy: 

1. All components are ranked by their free-float market capitalization. The maximum weight for any single security is 8% (4.5% for non-local components). If a security exceeds the maximum weight, then the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across all other index constituents. This process is repeated until no securities have weights exceeding the respective maximum weight. 

2. The 8%-cap weighting scheme will be applied to the largest security and the excess weight after each step shall be redistributed across all other (uncapped) securities in the index on a proportional basis: 

• If the largest two securities exceed 8%, both will be capped at 8%. 
• If the 3rd largest security exceeds 7%, it will be capped at 7%. 
• If the 4th largest security exceeds 6.5%, it will be capped at 6.5%.
• If the 5th largest security exceeds 6%, it will be capped at 6%. 
• If the 6th largest security exceeds 5.5%, it will be capped at 5.5%. 
• If the 7th largest security exceeds 5%, it will be capped at 5%. 
• If any other security exceeds 4.5%, it will be capped at 4.5%.

New

Upon an index rebalance, components selected to the index will be weighted according to a modified float-adjusted market cap weighting strategy: 

1. All components are ranked by their free-float market capitalization. The maximum weight for any single security is 8% (4.5% for non-local components). If a security exceeds the maximum weight, then the weight will be reduced to the maximum weight, and the excess weight shall be redistributed proportionally across all other index constituents. This process is repeated until no securities have weights exceeding the respective maximum weight. 

2. The 8%-cap weighting scheme will be applied to the largest security and the excess weight after each step shall be redistributed across all other (uncapped) securities in the index on a proportional basis: 

• If the largest two securities exceed 8%, both will be capped at 8%. 
• If the 3rd largest security exceeds 7%, it will be capped at 7%. 
• If the 4th largest security exceeds 6.5%, it will be capped at 6.5%. 
• If the 5th largest security exceeds 6%, it will be capped at 6%.  
• If the 6th largest security exceeds 5.5%, it will be capped at 5.5%. 
• If the 7th largest security exceeds 5%, it will be capped at 5%. 
• If any other security exceeds 4.5%, it will be capped at 4.5%.

In case the aggregated weight of all index components with less than 50% exposure to the activities outlined in section 1.1.1 exceeds 20%, a weighting cap factor will be applied to ensure the aggregated weight of such index components does not exceed 20%. The excess weight shall be proportionally redistributed among the local uncapped index components with more than 50% exposure to the activities outlined in section 1.1.1.

Old

Upon an index rebalance, components selected to the index will be weighted according to a modified float-adjusted market cap weighting strategy: 

1. All index components are weighted by their free-float market capitalization.

2. All components exceeding 4.5% but at least the largest five and at the maximum the largest 10 components are grouped together (so called “Large-Weights”). All other components are grouped together as well (so called “Small-Weights”).

3. The aggregated weighting of the Large-Weights is capped at 50%:

• Large-Weights: If the aggregated weighting of all components in Large-Weight exceeds 50%, then a capping factor is calculated to bring the weighting down to 50% - at the same time a second capping factor for the Small-Weights is calculated to increase the aggregated weight to 50%. These two factors are then applied to all components in the Large-Weights or the Small-Weights respectively.
• Large-Weights: The maximum weight for any single security is 20% and the minimum weighting is 5%. If a security is above the maximum or below the minimum weight, then the weight will be reduced to the maximum weight or increased to the minimum weight and the excess weight shall be redistributed proportionally across all other remaining index constituents in the Large-Weights.
• Small-Weights: The maximum weight for any single security is 4.5%. If a security is above the maximum weight, then the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across all other remaining index constituents in the Small-Weights.

New

Upon an index rebalance, components selected to the index will be weighted according to a modified float-adjusted market cap weighting strategy: 

1. All index components are weighted by their free-float market capitalization.

2. All components with more than 50% exposure to activities outlined in section 1.1.1 that exceed 4.5% in weight but at least the largest five and at the maximum the largest 10 of these components are grouped together (so called “Large-Weights”). All other components are grouped together as well (so called “Small-Weights”).

3. The aggregated weighting of the Large-Weights is capped at 50%:

• Large-Weights: If the aggregated weighting of all components in Large-Weight exceeds 50%, then a capping factor is calculated to bring the weighting down to 50% - at the same time a second capping factor for the Small-Weights is calculated to increase the aggregated weight to 50%. These two factors are then applied to all components in the Large-Weights or the Small-Weights respectively.
• Large-Weights: The maximum weight for any single security is 20% and the minimum weighting is 5%. If a security is above the maximum or below the minimum weight, then the weight will be reduced to the maximum weight or increased to the minimum weight and the excess weight shall be redistributed proportionally across all other remaining index constituents in the Large-Weights.
• Small-Weights: The maximum weight for any single security is 4.5%. If a security is above the maximum weight, then the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across all other remaining index constituents in the Small-Weights.

In case the aggregated weight of all index components with less than 50% exposure to the activities outlined in section 1.1.1 exceeds 20%, a weighting cap factor will be applied to ensure the aggregated weight of such index components does not exceed 20%. The excess weight shall be proportionally redistributed among the uncapped index components with more than 50% exposure to the activities outlined in section 1.1.1 within the Small-Weights.

Old

Upon an index rebalance, components selected to the index will be weighted according to a modified float-adjusted market cap weighting strategy as follows: 

1. All index components are weighted by their free-float market capitalization.

2. The aggregated weighting of Partnerships is capped at 24%.

• Partnerships: The maximum weight for any single security is 4.5%. If a security exceeds the maximum weight, the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across all other index constituents. This process is repeated until no securities have weights exceeding the respective maximum weight.
• Non-Partnerships: The capping scheme for components not classified as Partnerships is as follows: 
  • All components are ranked by their free-float market capitalization. The maximum weight for any single security is 8%. If a security exceeds the maximum weight, then the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across all other index constituents. This process is repeated until no securities have weights exceeding the respective maximum weight.
  • The 8%-cap weighting scheme will be applied to the largest securities and the excess weight after each step shall be redistributed across all other (uncapped) securities in the index on a proportional basis: 
• If the largest two securities exceed 8%, both will be capped at 8%.
• If the 3rd largest security exceeds 7%, it will be capped at 7%.
• If the 4th largest security exceeds 6.5%, it will be capped at 6.5%.
• If the 5th largest security exceeds 6%, it will be capped at 6%.
• If the 6th largest security exceeds 5.5%, it will be capped at 5.5%.
• If the 7th largest security exceeds 5%, it will be capped at 5%.
• If any other security exceeds 4.5%, it will be capped at 4.5%.

New

Upon an index rebalance, components selected to the index will be weighted according to a modified float-adjusted market cap weighting strategy as follows: 

1. All index components are weighted by their free-float market capitalization.

2. The aggregated weighting of Partnerships is capped at 24%.

• Partnerships: The maximum weight for any single security is 4.5%. If a security exceeds the maximum weight, the weight will be reduced to the maximum weight, and the excess weight shall be redistributed proportionally across all other index constituents. This process is repeated until no securities have weights exceeding the respective maximum weight.
• Non-Partnerships: The capping scheme for components not classified as Partnerships is as follows: 
  • All components are ranked by their free-float market capitalization. The maximum weight for any single security is 8%. If a security exceeds the maximum weight, then the weight will be reduced to the maximum weight, and the excess weight shall be redistributed proportionally across all other index constituents. This process is repeated until no securities have weights exceeding the respective maximum weight.
  • The 8%-cap weighting scheme will be applied to the largest securities and the excess weight after each step shall be redistributed across all other (uncapped) securities in the index on a proportional basis: 
• If the largest two securities exceed 8%, both will be capped at 8%.
• If the 3rd largest security exceeds 7%, it will be capped at 7%.
• If the 4th largest security exceeds 6.5%, it will be capped at 6.5%.
• If the 5th largest security exceeds 6%, it will be capped at 6%.
• If the 6th largest security exceeds 5.5%, it will be capped at 5.5%.
• If the 7th largest security exceeds 5%, it will be capped at 5%.
• If any other security exceeds 4.5%, it will be capped at 4.5%.

In case the aggregated weight of all index components with less than 50% exposure to the activities outlined in section 1.1.1 exceeds 20%, a weighting cap factor will be applied to ensure the aggregated weight of such index components does not exceed 20%. The excess weight shall be proportionally redistributed within the respective bucket among the uncapped index components with more than 50% exposure to the activities outlined in section 1.1.1.

Old

Upon an index rebalance, components selected to the index will be weighted according to a tiered modified float-adjusted market cap weighting strategy as follows: 

• The maximum security weight is 5%.
• The maximum tier weights are defined as follows:
  • 25%: Agriculture 
  • 30%: Energy
  • 15%: Sustainable Resources (Renewable Energy and Forest and Paper Products combined)
  • 30%: Metals (Industrial Metals and Precious Metals combined)
• Components are weighted in proportion to their free-float adjusted market capitalization.
• If the aggregate weight of components in any tier is greater than the maximum tier weight, the weight of components in that tier will be reduced in proportion to their free-float adjusted market capitalization so that the aggregate weight of components in that tier is equal to the tiers’ maximum weight. The excess weight is redistributed proportionally among remaining tiers and this process is repeated until the aggregate weight of all tier weights equals 100% and no tier weight violates its maximum tier weight.
• If a security’s weight exceeds the maximum weight, the weight will be reduced to the maximum weight and the excess weight will be redistributed among uncapped components equally within the security’s respective tier. This process is repeated until the sum of all components’ weights is equal to 100% and no component’s weight exceeds the maximum security weight.

New

Upon an index rebalance, components selected to the index will be weighted according to a tiered modified float-adjusted market cap weighting strategy as follows:

• The maximum security weight is 5%.
• The maximum tier weights are defined as follows:
  • 25%: Agriculture 
  • 30%: Energy
  • 15%: Sustainable Resources (Renewable Energy and Forest and Paper Products combined)
  • 30%: Metals (Industrial Metals and Precious Metals combined)
• Components are weighted in proportion to their free-float adjusted market capitalization.
• If the aggregate weight of components in any tier is greater than the maximum tier weight, the weight of components in that tier will be reduced in proportion to their free-float adjusted market capitalization so that the aggregate weight of components in that tier is equal to the tiers’ maximum weight. The excess weight is redistributed proportionally among the remaining tiers and this process is repeated until the aggregate weight of all tier weights equals 100% and no tier weight violates its maximum tier weight.
• If a security’s weight exceeds the maximum weight, the weight will be reduced to the maximum weight and the excess weight will be redistributed among uncapped components equally within the security’s respective tier. This process is repeated until the sum of all components’ weights is equal to 100% and no component’s weight exceeds the maximum security weight.

In case the aggregated weight of all index components with less than 50% exposure to the activities outlined in section 1.1.1 exceeds 20%, a weighting cap factor will be applied to ensure the aggregated weight of such index components does not exceed 20%. The excess weight shall be proportionally redistributed within the respective tier among the uncapped index components with more than 50% exposure to the activities outlined in section 1.1.1.

Old

Upon an index rebalance, components selected to the index will be weighted according to a tiered modified float-adjusted market cap weighting strategy as follows:

• The maximum security weight is the lesser of: – 5% or – the security’s three-month average daily trading volume in USD divided by 200.0 million.
• Tier weights are as follows:
  • 50%: Robots & Manufacturing systems
  • 25%: Machine vision & Manufacturing software 
  • 25%: Embedded machine learning chips, robotic surgical systems, and semiconductor manufacturing systems
• Components are weighted based on their free-float adjusted market capitalization in proportion to all other components in the same tier, multiplied by the tier weight.
• If a security’s weight exceeds the maximum weight, the weight will be reduced to the maximum weight, and the excess weight will be redistributed among uncapped components equally within the same tier. This process is repeated until the sum of all components’ weights is equal to 100% and no component’s weight exceeds the maximum security weight.
• The maximum weight of components takes precedence over tier weights. In case the fixed tier weights create a conflict with the maximum component weights, tier weights may be adjusted accordingly (on a proportional basis) to allow the aggregate weight of all index components to equal 100% while satisfying all other capping scheme constraints.

The nominal value used in the liquidity overlay may be adjusted downward to allow the aggregate weight of all index components to equal to 100% while satisfying all other capping scheme constraints.

New

Upon an index rebalance, components selected to the index will be weighted according to a tiered modified float-adjusted market cap weighting strategy as follows:

• The maximum security weight is the lesser of: – 5% or – the security’s three-month average daily trading volume in USD divided by 200.0 million.
• Tier weights are as follows:
  • 50%: Robots & Manufacturing systems
  • 25%: Machine vision & Manufacturing software
  • 25%: Embedded machine learning chips, robotic surgical systems, and semiconductor manufacturing systems
• Components are weighted based on their free-float adjusted market capitalization in proportion to all other components in the same tier multiplied by the tier weight.
• If a security’s weight exceeds the maximum weight, the weight will be reduced to the maximum weight and the excess weight will be redistributed among uncapped components equally within the same tier. This process is repeated until the sum of all components’ weights is equal to 100% and no component’s weight exceeds the maximum security weight.
• The maximum weight of components takes precedence over tier weights. In case the fixed tier weights create a conflict with the maximum component weights, tier weights may be adjusted accordingly (on a proportional basis) to allow the aggregate weight of all index components to equal 100% while satisfying all other capping scheme constraints.
• In case the aggregated weight of all index components with less than 50% exposure to the activities outlined in section 1.1.1 exceeds 20%, a weighting cap factor will be applied to ensure the aggregated weight of such index components does not exceed 20%. The excess weight shall be proportionally redistributed within the respective tier among the uncapped index components with more than 50% exposure to the activities outlined in section 1.1.1.

The nominal value used in the liquidity overlay may be adjusted downward to allow the aggregate weight of all index components to equal to 100% while satisfying all other capping scheme constraints.

Old

Upon an index rebalance, components selected to the index will be weighted according to a modified float-adjusted market cap weighting strategy. The following scheme is applied in the quarters in which the index is reconstituted and rebalanced:

1. All components are ranked by their free-float market capitalization. The top five securities get the following weights:

• The largest security’s weight will be fixed to 7%.
• The 2nd largest security’s weight will be fixed to 6.5%.
• The 3rd largest security’s weight will be fixed to 6%.
• The 4th largest security’s weight will be fixed to 5.5%.
• The 5th largest security’s weight will be fixed to 5%.

2. The aggregate weight of the remaining securities is 70%. The maximum weight allowed for the remaining securities is 4.5%. If a security exceeds the maximum weight, the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across the index constituents out of the top 5 securities. This process is repeated until no securities have weights exceeding the maximum weight.

3. The maximum weight for silver securities is 4.5% and the weight of silver securities in total must not constitute more than 20% of the index. In this case a sector-weighting cap factor will be applied which is calculated to ensure that the aggregate weight of all gold securities will not be less than 80% and the aggregate weighting of all silver securities will not be greater than 20%.

The following scheme is applied in the quarters in which the index is rebalanced:

1. The top five securities from the previous index review receive the same weights as of the previous review. The rest of constituents are ranked by their free-float market capitalization.

2. In case one of the top five components of the previous index review does not exist anymore in the current rebalance, the subsequent constituent in the rank will move up in rank until there is a fixed list of top five components.

3. The aggregate weight of the remaining securities is 70%. The maximum weight allowed for the remaining securities is 4.5%. If a security exceeds the maximum weight, the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across the index constituents out of the top 5 securities. This process is repeated until no securities have weights exceeding the maximum weight.

4. The maximum weight for silver securities is 4.5% and the weight of silver securities in total must not constitute more than 20% of the index. In this case a sector-weighting cap factor will be applied which is calculated to ensure that the aggregate weight of all gold securities will not be less than 80% and the aggregate weighting of all silver securities will not be greater than 20%.

New

Upon an index rebalance, components selected to the index will be weighted according to a modified float-adjusted market cap weighting strategy. The following scheme is applied in the quarters in which the index is reconstituted and rebalanced:

1. All components are ranked by their free-float market capitalization. The top five securities get the following weights:

• The largest security’s weight will be fixed to 7%.
• The 2nd largest security’s weight will be fixed to 6.5%.
• The 3rd largest security’s weight will be fixed to 6%.
• The 4th largest security’s weight will be fixed to 5.5%.
• The 5th largest security’s weight will be fixed to 5%.

2. The aggregate weight of the remaining securities is 70%. The maximum weight allowed for the remaining securities is 4.5%. If a security exceeds the maximum weight, the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across the index constituents out of the top 5 securities. This process is repeated until no securities have weights exceeding the maximum weight.

3. The maximum weight for index components with less than 50% exposure to gold-related activities outlined in section 1.1.1 is 4.5%. In case the aggregated weight of these index components exceeds 20%, a weighting cap factor will be applied to ensure the aggregated weight of such index components does not exceed 20%.

The excess weight will be proportionally redistributed among uncapped index components with more than 50% exposure to gold-related activities outlined in section 1.1.1.

The following scheme is applied in the quarters in which the index is rebalanced:

1. The top five securities from the previous index review receive the same weights as of the previous review. The rest of constituents are ranked by their free-float market capitalization.

2. In case one of the top five components of the previous index review does not exist anymore in the current rebalance, the subsequent constituent in the rank will move up in rank until there is a fixed list of top five components.

3. The aggregate weight of the remaining securities is 70%. The maximum weight allowed for the remaining securities is 4.5%. If a security exceeds the maximum weight, the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across the index constituents out of the top 5 securities. This process is repeated until no securities have weights exceeding the maximum weight.

4. The maximum weight for index components with less than 50% exposure to gold-related activities outlined in section 1.1.1  is 4.5%. In case the aggregated weight of these index components exceeds 20%, a weighting cap factor will be applied to ensure the aggregated weight of such index components does not exceed 20%.

The excess weight will be proportionally redistributed among uncapped index components with more than 50% exposure to gold-related activities outlined in section 1.1.1.

Old

Upon an index rebalance, components selected to the index will be weighted according to the following procedure which ensures that countries are represented less by market capitalization and liquidity of their respective market, but more by their economic strength:

1. For all countries which are covered by the index all most recent GDP figures are aggregated. The annual GDP weighting for each eligible country is calculated as the GDP of this country divided by the total GDP of all countries covered by the index. All components in the index are assigned to the

(a) home country - i.e., for components which are incorporated in the index region,

(b) country where they generate most of their revenues (or - where applicable - have at least 50% of their assets) in the index region - for non-local components. For each of these countries the GDP country weighting is calculated, which is in general capped at 35%. A specific country weighting must be supported by a required minimum number of components or the GDP Country-Weighting is reduced. The GDP Country-Weighting scheme will be applied from top-down, i.e. from the largest country by GDP to the smallest country. The excess weight after each step shall be redistributed across all (uncapped) countries in the index on a proportional basis.

2. If the number of components of the respective country is equal or less than

• 10, the GDP Country-Weighting is capped at 30%.
• 7, the GDP Country-Weighting is capped at 17.5%.
• 4, the GDP Country-Weighting is capped at 10%.
• 2, the GDP Country-Weighting is capped at 5%.
• 1, the GDP Country-Weighting is capped at 2.5%.

If a country does not have enough components to support the GDP Country-Weighting, the GDP Country-Weighting weight will be lowered to the next smaller level (as per list above); the remaining weight will be distributed among the uncapped countries. This test is run every quarter to reflect changes to the number of components per country and changes to the set of countries for the index. 

3. After the country GDP weights have been applied, an additional weighting cap factor is calculated on a component level as follows:

(a) All components are ranked by their free-float market capitalization. The maximum weight for any single security is 8% (4.5% for non-local components). If a security exceeds the maximum weight, then the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across all other index constituents. This process is repeated until no securities have weights exceeding the respective maximum weight.

(b) The 8%-cap weighting scheme will be applied to the largest securities and the excess weight after each step shall be redistributed across all other (uncapped) securities in the index on a proportional basis:

• If the largest two securities exceed 8%, both will be capped at 8%.
• If the 3rd largest security exceeds 7%, it will be capped at 7%.
• If the 4th largest security exceeds 6.5%, it will be capped at 6.5%.
• If the 5th largest security exceeds 6%, it will be capped at 6%.
• If the 6th largest security exceeds 5.5%, it will be capped at 5.5%.
• If the 7th largest security exceeds 5%, it will be capped at 5%.
• If any other security exceeds 4.5%, it will be capped at 4.5%.

The annual GDP weightings are reviewed annually and are kept unchanged during the following three quarterly reviews. Every quarter the GDP country-weighting cap factors for each country are re-set to reflect the annual GDP Country-Weightings. The primary source for GDP data is the International Monetary Fund (IMF). The actual GDP figures for the prior year are used; if the actual figures are not available, the estimated figures for the prior year will be used. If some GDP figures are still not available at the time of the annual review of the GDP Index in June, other sources like the Organization for Economic Cooperation and Development (OECD) and government organisations may be used as well.

New

Upon an index rebalance, components selected to the index will be weighted according to the following procedure which ensures that countries are represented less by market capitalization and liquidity of their respective market, but more by their economic strength:

1. For all countries which are covered by the index all most recent GDP figures are aggregated. The annual GDP weighting for each eligible country is calculated as the GDP of this country divided by the total GDP of all countries covered by the index. All components in the index are assigned to the

(a) home country - i.e., for components which are incorporated in the index region,

(b) country where they generate most of their revenues (or - where applicable - have at least 50% of their assets) in the index region - for non-local components. For each of these countries the GDP country weighting is calculated, which is in general capped at 35%. A specific country weighting must be supported by a required minimum number of components or the GDP Country-Weighting is reduced. The GDP Country-Weighting scheme will be applied from top-down, i.e. from the largest country by GDP to the smallest country. The excess weight after each step shall be redistributed across all (uncapped) countries in the index on a proportional basis.

2. If the number of components of the respective country is equal or less than

• 10, the GDP Country-Weighting is capped at 30%.
• 7, the GDP Country-Weighting is capped at 17.5%.
• 4, the GDP Country-Weighting is capped at 10%.
• 2, the GDP Country-Weighting is capped at 5%.
• 1, the GDP Country-Weighting is capped at 2.5%.

If a country does not have enough components to support the GDP Country-Weighting, the GDP Country-Weighting weight will be lowered to the next smaller level (as per list above); the remaining weight will be distributed among the uncapped countries. This test is run every quarter to reflect changes to the number of components per country and changes to the set of countries for the index. 

3. After the country GDP weights have been applied, an additional weighting cap factor is calculated on a component level as follows:

(a) All components are ranked by their free-float market capitalization. The maximum weight for any single security is 8% (4.5% for non-local components). If a security exceeds the maximum weight, then the weight will be reduced to the maximum weight and the excess weight shall be redistributed proportionally across all other index constituents. This process is repeated until no securities have weights exceeding the respective maximum weight.

(b) The 8%-cap weighting scheme will be applied to the largest securities and the excess weight after each step shall be redistributed across all other (uncapped) securities in the index on a proportional basis:

• If the largest two securities exceed 8%, both will be capped at 8%.
• If the 3rd largest security exceeds 7%, it will be capped at 7%.
• If the 4th largest security exceeds 6.5%, it will be capped at 6.5%.
• If the 5th largest security exceeds 6%, it will be capped at 6%.
• If the 6th largest security exceeds 5.5%, it will be capped at 5.5%.
• If the 7th largest security exceeds 5%, it will be capped at 5%.
• If any other security exceeds 4.5%, it will be capped at 4.5%.

The annual GDP weightings are reviewed annually and are kept unchanged during the following three quarterly reviews. Every quarter the GDP country-weighting cap factors for each country are re-set to reflect the annual GDP Country-Weightings. The primary source for GDP data is the International Monetary Fund (IMF). The actual GDP figures for the prior year are used; if the actual figures are not available, the estimated figures for the prior year will be used. If some GDP figures are still not available at the time of the annual review of the GDP Index in June, other sources like the Organization for Economic Cooperation and Development (OECD) and government organisations may be used as well.

In case the aggregated weight of all non-local index components with less than 50% exposure to the activities outlined in section 1.1.1 exceeds 20%, a weighting cap factor will be applied to ensure the aggregated weight of such index components does not exceed 20%. The excess weight shall be proportionally redistributed among the local uncapped index components with more than 50% within the respective GDP Country-Weighting exposure to the activities outlined in section 1.1.1.