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

  • The initial investable universe consists of publicly-traded global companies and publicly-traded music funds and/or royalty trusts.
  • The Index seeks to provide exposure to global companies with a core business interest in the global music industry. Companies must derive at least 50% of their annual revenues from the global music industry or be in the top 5 companies or have at least 10% of global market share in one or more of the following industry sub-segments:
    • Music streaming;
    • Music content and distribution;
    • Live music events/ticketing;
    • Satellite and broadcast radio;
    • Music equipment and technology.
  • Companies must be listed on a regulated global stock exchange in the form of shares tradable for foreign investors without restrictions with adequate liquidity for an exchange traded product as determined by the Index provider.
  • Market capitalization or assets under management of at least $100 million USD at time of rebalance.
  • Average daily traded value of at least $500,000 USD over the last six months at time of rebalance, or at least $200,000 USD average traded value over the last six months for existing components.
  • Components that meet all other inclusion requirements, but have an average daily traded value between $200,000 and $500,000 USD over the last six months, are eligible for inclusion but will receive half the market capitalization weight with the residual weight redistributed among the other, more liquid components.
  • China domiciled companies will be Hong Kong traded versions if available, provided their liquidity is comparable to US exchange-listed ADR shares, otherwise the US exchange-traded ADR version will be utilized.
  • Special Purpose Acquisition Company (SPAC) targets are eligible for inclusion once they are trading on a public exchange as the target entity, provided they meet all other eligibility criteria.