XOUT U.S. LARGE CAP INDEX ICON

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The bottom 250 securities are eliminated based on the following criteria:
  • The selection pool consists of the largest 500 by market capitalization of publicly traded companies listed on either the NYSE or NASDAQ exchanges, with a country of domicile designation of the United States, as determined by the index provider, with:

    • a free-float percentage equal to or exceeding 50% of total shares outstanding,
    • a share price less than $10,000 per share (USD),
    • positive earnings per share for each quarter over the last trailing 12-month period.

  • Each company in the investable universe receives a model score based on quantitatively derived inputs that attempt to qualify each company as being eligible for index inclusion or eliminated.
  • The quantitative inputs informing the XOUT proprietary growth model include a combination of the following proprietary fundamental growth signals designed to identify industry and/or secular disruption:

    • Revenue growth
    • Hiring growth
    • Capital deployment
    • Share repurchases
    • Profitability
    • Earnings sentiment
    • Management performance

  • Each quantitative factor in the model receives a quintile score from 1 to 5, 5 being best, based on quantitative fundamental inputs.
  • The quintile scores are weighted based on a proprietary weighting methodology to achieve an aggregate model quintile score for each company.
  • Companies scoring in aggregate below the median quintile in the investable universe are eliminated or X‘d OUT, and the remaining names are re-weighted by market capitalization.
  • Minimum market capitalization of $5 billion at time of index reconstitution and minimum liquidity of a quarter million shares average volume traded in each of the last six months leading up to evaluation.
  • Initial public offerings become eligible for inclusion, six months after trading.

The daily price and gross and net total return of the XOUT U.S. Large Cap Index (XOUTTR and XOUTNR) is calculated and published by Solactive AG.

The XOUT U.S. Large Cap Index is a passively managed index.  It is not possible to invest in an index. For more information on the ETF tracking this index, contact info@xoutcapital.com.

Quotes for the XOUT U.S. Large Cap Index can be found each day under the symbols XOUTTR and XOUTNR on Bloomberg, on Reuters as .XOUTTR and .XOUTNR 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 exclusion at the next quarterly reconstitution date.

Eligible initial public offerings are eligible for inclusion after six months and 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 quarterly on the third Thursday of the rebalance month.