BRAND VALUE INDEX CRITERIA - EQM Indexes
BRAND VALUE INDEX CRITERIA2018-05-31T22:28:26+00:00

Brand Value Index

BRAND VALUE INDEX CRITERIA

CONSTITUENT ELIGIBILITY REQUIREMENTS

In order to be eligible for inclusion in the index, companies must meet the following conditions:

  • Publicly traded US-listed stocks and US exchanged-traded ADRs, $1 billion USD in market capitalization and above.
  • Companies included in the Tenet Partners Brand Score universe as of the latest available period prior to the rebalance date. Brand Scores provided by Tenet Partners measuring brand familiarity, favorability, and innovation and are combined into a composite Brand Power Score ranked 0 to 100, with 100 being best.

    Familiarity – measures awareness of the brand. Respondents are considered to be familiar with the brand if they state they know more than just the company name. Scores range from 0 to 100, with 100 being best.
    Favorability – measures the perception of the brand based on how it performs across three key attributes: Overall Reputation, Perception of Management, and Investment Potential. Scores range from 0 to 100, with 100 being best.

  • Only companies with a Brand Power score of 60 and above AND a positive return on invested capital (ROIC) defined as the trailing 12-month net operating profit after tax divided by the average invested capital as of the latest filed (LF) period, are eligible for inclusion in the index.
  • The year-over-year change in Brand Power Score is standardized by the year-over-year change in market capitalization as of the latest available quarter and the companies with the highest Brand Power Score to Market Capitalization ratio are selected for inclusion in the Index up to a maximum of 50 names.