Methodology Change | Solactive Metaverse Theme Index | Effective Date 15/04/2022

Today, on the 15/04/2022, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for Methodology Change

The Indices aim to represent the companies that provide or use innovative technologies to offer products and services around the metaverse. In order to limit the exposure of individual index component and to increase the diversification within the index composition, Solactive has proposed to implement a single security weight cap of 4.5%. It is also proposed to add a monthly re-weighting process in the months where no rebalancing takes place to keep the index diversified between the rebalancing months.
Changes to the Index Guideline

Changes to the Index Guideline

The following Methodology changes will be implemented in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):

Section 2.3 Weighting of the Index Components

From (old version):

 “[…]

2) The relevant weight as described in 2.3.1 is multiplied by two if the companies SHARE CLASS MARKET CAPITALIZATION is ranked within the top ten of the 40 selected companies.

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

To (new version):

“[…]

2) The relevant weight as described in 2.3.1 is multiplied by two if the companies SHARE CLASS MARKET CAPITALIZATION is ranked within the top ten of the 40 selected companies.

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

4) The last step is a weight cap for each INDEX COMPONENT by re-distributing any weight which is larger than 4.5% to the other INDEX COMPONENT proportionally in an iterative manner.

In addition, on any REVIEW DAY, the INDEX shall be reweighted on ADJUSTMENT DAY by applying a weight cap for each INDEX COMPONENT by re-distributing any weight which is larger than 4.5% to the other INDEX COMPONENT proportionally in an iterative manner.

Section 6 Definitions

The following definitions will be included:

“[…]

“ADJUSTMENT DAY” means each day that occurs on the third Friday of each calendar month other than June and December. If that day is not a TRADING DAY, the ADJUSTMENT DAY will be the immediately following TRADING DAY.

“REVIEW DAY” means 10 CALCULATION DAY before the ADJUSTMENT DAY, disregarding any potential change of the ADJUSTMENT DAY.

 […]”

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.