BLOCKCHAIN INDEX CRITERIA - EQM Indexes
BLOCKCHAIN INDEX CRITERIA2018-01-14T14:16:43+00:00

BLOCKCHAIN INDEX CRITERIA

CONSTITUENT ELIGIBILITY REQUIREMENTS

Securities are selected based on the following four criteria:

  1. Companies actively engaged in the R&D, proof-of-concept testing, and/or implementation of blockchain technology.
  2. Companies profiting from the demand for blockchain-based applications such as cryptocurrency and mining.
  3. Companies partnering with and/or directly investing in companies that are actively engaged in the development and/or or use of blockchain technology.
  4. Member of multiple consortiums or groups dedicated to the exploration of blockchain technology use.
  • Companies are designated as Core blockchain companies if they derive significant direct revenue, as defined by the Index provider, from blockchain-related business and/or are among the largest 5 investors in blockchain-engaged companies as defined by the Index provider.
  • Companies are designated as Non-Core blockchain companies if they directly invest or partner in blockchain technology companies, participate in multiple blockchain industry consortiums, and/or provide consulting services to companies actively engaged in the R&D, proof-of-concept testing, and/or implementation of blockchain technology.
  • Listing on a regulated stock exchange in the form of shares tradable for foreign investors without restrictions.
  • Market capitalization of at least 200 million USD, excluding exchange listed investment vehicles.
  • Minimum price at time of purchase of $3 per share USD, excluding exchange listed investment vehicles.
  • Average daily trading volume of at least 1,000,000 USD over the last six months, excluding exchange listed investment vehicles.
  • Adequate constituent liquidity and accessibility for an exchange listed product as determined by the Index Provider.
  • Non-US companies will be U.S. exchange traded ADR versions if available, assuming they meet
    liquidity and accessibility requirements defined previously, otherwise local shares will be utilized that meet these requirements.
  • No local shares, only ADRs, will be held for companies domiciled in emerging markets or those listed on small regional exchanges.