Methodology Change | E-Mobilität Wasserstoff Index & E-Mobilität Batterie Index | Effective Date 30/06/2020

Today, on the 30/06/2020 Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):

Rationale for methodology change

Given the recent market events, there is undesired concentration in the Indices leading to Indices getting overweight with specific securities and the distribution of the Indices is being reduced to a very limited number of companies.

In order to make sure that the goal of the Indices is fulfilled and to have synchronized approach (as both the Indices deal with eMobility topic), the following changes are proposed to the index guidelines. 

Changes to the Index Guideline

Section 2.2 ORDINARY ADJUSTMENT

From:

[…]

 The Index will be reviewed on a monthly basis if all constituents fulfill the following criteria.

• Market Capitalization equal or greater than 80 million USD.
• A one-month average daily value traded equal or greater than 150.000 USD.

[…]

To:

[…]

• (a) Market Capitalization equal or greater than 80 million USD.
• (b) A one-month average daily value traded equal or greater than 150.000 USD.
• (c) The maximum weight of a company is 25%.

In a first step, criteria a) and b) is implemented, in case a security does not fulfill the criteria, the security will be removed from the Index. Then criteria c) is applied, the resulting excess weight is redistributed proportionally among all Index Components whose weights are not capped. This process is iterated until constraints is not violated anymore. The resulting weight will be implemented on the REBALANCE DAY after close of business.

[…]

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.