EQM the Bad Index



Here you can find quick answers to some of our most common questions. If you can’t find the answer to your question on this page, contact us and we will help you with any unanswered questions you may have.

The index selection process selects equities for the selection pool that meet the following conditions as determined the Index Provider. Securities are selected based on the following criteria:

• Equities listed on a U.S stock exchange, excluding Over-the-Counter listed companies and including U.S. exchange listed ADR versions.

• Non-US domiciled companies, including Emerging Markets, eligible for inclusion only as U.S.-traded ADRs.

• Companies must derive the majority of their operating revenue from one of the following business categories:
Betting – Casinos, gaming, and online gaming operations;
Alcohol/Cannabis – Alcoholic beverage manufacturing and distribution and/or cannabis cultivation and sales.
Drugs – Pharmaceutical and biotechnology product development and manufacturing.

• The Index Provider utilizes issuer financial statements and other public filings and reports, as well as third-party industry research, reports, and analyses, to identify companies in business categories that meet the Index’s criteria for inclusion.

• Minimum market capitalization of least $10 billion USD for new component companies in the Drug category, with a minimum market capitalization of $5 billion USD for existing component companies.

• Minimum market capitalization of least $1 billion USD for new component companies in the Betting and Alcohol/Cannabis categories, with a minimum market capitalization of $500 million USD for existing component companies.

• Average daily traded value of at least $1 million USD over the last 6 months

• Maximum weight of Cannabis components not to exceed 10% in aggregate at time of adjustment.

• Number of biotechnology components limited to the top by market capitalization.

The daily price and return of the EQM BAD Index (BADIDX) is calculated and published by Solactive AG.
The EQM BAD INDEX is a passively managed index. It is not possible to invest in an index. For more information on the ETF tracking this index, contact tommy@investbad.com.

Quotes for the EQM BAD Index can be found each day under the symbol BADIDX on Bloomberg, on Reuters as .BADIDX and from other financial data providers.

The company did not meet the selection criteria when the index was last reconstituted. Companies that now meet index selection criteria will become candidates for exclusion at the next quarterly reconstitution date.

Eligible initial public offerings are eligible for inclusion will be considered for inclusion on the index’s next scheduled reconstitution date.
If an index component’s stock is discontinued due to a merger or acquisition, the index committee may, at its sole discretion, replace the discontinued component at the time of discontinuation if more than 30 calendar days remain until the next reconstitution date. The discontinued component will either be deleted entirely or be replaced with the next eligible security from a reserve list. The replacement will be given the appropriate weighting given the securities country of domicile. If there are not more than 30 calendar days remaining until the next reconstitution date, the index committee will wait until the next reconstitution date to make the replacement. In this scenario, any funds received from the discontinued security will be distributed to the remaining index components pro rata.

The index is rebalanced quarterly on the last business day of March, June, September, and December.