BLOCKCHAIN INDEX FAQs - EQM Indexes
BLOCKCHAIN INDEX FAQs2018-04-29T02:38:19+00:00

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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 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.

The daily price and return of the EQM-Emerita Blockchain BLOK 50 Global Index (BLOK-50) is calculated and published by Solactive AG, a leading index developer, and calculation/publication agent for the ETP industry.

The EQM-Emerita Blockchain BLOK 50 Global Index is a passively managed index.  It is not possible to invest in an index.

For more information on an ETF that invests in blockchain-based technology. AMPLIFY TRANSFORMATIONAL DATA SHARING ETF

The EQM-Emerita Blockchain BLOK 50 Global Index (BLOK-50) is licensed by Emerita Capital Indices, Inc. Please email inquiries to grojo@emeritcapital.com.

Quotes for the EQM-Emerita Blockchain BLOK 50 Global Index can be found each day under the symbol BLOK-50 on Bloomberg, on Reuters as BLOK50, on the Blockchain Index Summary website and from other financial data providers.  Quotes, returns, historical prices, and constituent weightings will also be updated daily on Blockchain Index Summary.

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 inclusion at the next reconstitution date.

Eligible initial public offerings will be considered for inclusion on the index’s next scheduled reconstitution date.  In the event of an IPO which the index committee deems has “high importance” for the EQM-Emerita Blockchain BLOK 50 Global Index, the index committee can decide to include these companies on an extraordinary adjustment event basis.

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 and is scheduled for reconstitution on the second Wednesday of March, June, September and December.

Weighting – The index follows a modified equal weighted methodology. On each adjustment day each Index Component of the EQM-Emerita Blockchain BLOK 50 Global Index (BLOK-50) is equally weighted within two investment pools:  Core blockchain companies and Non-Core blockchain companies. 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.