BRAND VALUE INDEX FAQS - EQM Indexes
BRAND VALUE INDEX FAQS2018-06-01T00:37:06+00:00

Brand Value Index

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The index selection process selects equities for the selection pool that meet the following conditions as determined by Tenet Partners, Brandometry, and EQM Indexes:

Securities are selected based on the following criteria:

  • 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.
The daily price and return of the EQM Brand Value Index (.BVAL) is calculated and published by Thomson Reuters.

The EQM Brand Value is a passively managed index.  It is not possible to invest in an index. For more information on an ETF that invests in Brand Value go to Brand Value ETF.

The EQM Brand Value Index (.BVAL) is licensed by Brandometry. Please email inquiries to Larry Medin at larry@brandometry.net.

Quotes for the EQM Brand Value Index can be found each day under the symbol BVAL_IDX on Bloomberg, on Reuters as .BVAL 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 inclusion at the next annual reconstitution date.

Eligible initial public offerings included in the Tenet Partners Brand Power Score universe 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 annually on the second Wednesday in September using the latest available Tenet Partners Brand Power Scores.