INTERNATIONAL ECOMMERCE INDEX FAQS - EQM Indexes
INTERNATIONAL ECOMMERCE INDEX FAQS2018-11-01T12:38:42+00:00

International Ecommerce EQM Index

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The index selection process selects equities for the selection pool that meet the following conditions as determined by EQM Indexes:

Securities are selected based on the following criteria:

  • Non-US domiciled publicly traded companies that derive significant business exposure from at least one of three international ecommerce business segments: retail, travel, marketplace.
  • At least 90% of revenues should be derived from online business transactions or ecommerce platforms as opposed to brick and mortar and/or in-store transactions.
  • Listing on a regulated stock exchange in the form of shares tradable for foreign investors without restrictions.
  • Market capitalization of at least 100 million USD.
  • Average daily traded value of at least 1,000,000 USD over the last six months.
  • ADRs, GDRs, and listed common stocks which are deemed to have adequate constituent liquidity and custodial relationship access for an exchange listed product as determined by the Index Provider.

The daily price and return of the EQM International Ecommerce Index (XBUYXT) is calculated and published by Solactive AG, a leading index developer, and calculation/publication agent for the ETP industry.

The EQM International Ecommerce Index has been licensed to Amplify ETFs.  For information, click here.

The EQM International Ecommerce Index is an EQM Indexes created index. Please email inquiries to info@eqmindexes.com

Quotes for the EQM International Ecommerce Index (XBUYXT) on Bloomberg, on Reuters as .XBUYXT 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.

In case a security does not have a trading history of 6 months (e.g., IPOs), such a security must have started trading at least 3 months before the start of the data analysis date and should have traded on 90% of the eligible trading days for the past 3 months.

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 April, July, October, and January.

Liquidity Adjustment

On each Adjustment Day the Index Components of the EQM International Ecommerce Index (XBUYXT) are equally weighted subject to the following liquidity adjustments:

  • Each Index Component is grouped into two liquidity pools based on the respective Index Component’s average daily value traded over the last 6 months. The first liquidity pool consists of the Index Components ranked in the top 80% of liquidity, while the second liquidity pool consists of the components ranked in the bottom 20% of liquidity.
  • Index Components in the bottom 20% liquidity pool will have their respective weightings reduced by 50%. The excess weight resulting from the 50% weight reduction is then equally distributed among the Index Components in the top 80% liquidity pool.

Country Weight Limitation

There is a maximum country of domicile weight of 25% per country. To achieve this country weight limitation, each Index Component’s country of domicile is identified, and the respective country weights summed. If any country has a combined weight greater than 25%, each Index Component that is domiciled in that country has its weight reduced on a pro rata basis, such that the country’s combined weight is reduced to 25%. The excess weight resulting from any country weight reduction is then redistributed equally to all the other companies in the top 80% liquidity pool.