MVIS announces rules changes for the Equity Index Guide for Q4 2021

Frankfurt (1 November 2021) – MV Index Solutions GmbH (MVIS®) will change the following rules for BlueStar branded indices:

All changes will be effective and implemented as of the December 2021 review.

  • Changes to Investability Criteria:

New RulesOld Rules
MIN.
FULL MCAP
TO ENTER
THE INDEX
MIN.
FULL MCAP
TO REMAIN
IN THE INDEX
MIN.
3M ADTV
TO ENTER
THE INDEX*
MIN.
3M ADTV
TO REMAIN
IN THE INDEX**
MIN.
3M ADTV
TO REMAIN
IN THE INDEX***
MIN.
FLOAT MCAP
MIN.
6M ADTV
BlueStar Asia Technology Index $500mm$250mm$2mm$1mm$1.5mm$500mm$2mm
BlueStar Europe Travel and Vacation Index $500mm$250mm$2mm$1mm$1.5mm$500mm$2mm
BlueStar Travel and Vacation Index $1bn$500mm$2mm$1mm$1.5mm$1bn$2mm
BlueStar Fintech Index $500mm$250mm$1mm$200k$600k$500mm$1mm
BlueStar Robotics Index $500mm$250mm$1mm$200k$600k$500mm$1mm
BlueStar Top 10 US Banks Index $5bn$2.5bn$20mm$10mm$15mmn/a$50mm
BlueStar Total Security Index $500mm$250mm$1mm$200k$600k$500mm$1mm
BlueStar E-Games Index $150mm$75mm$1mm$200k$600k$100mm$1mm
BlueStar Artificial Intelligence Index $1bn$500mm$5mm$2.5mm$3.5mm$1bn$5mm
BlueStar Artificial Intelligence Index - Internet Services $100bn$50bn$5mm$2.5mm$3.5mm$100bn$5mm
BlueStar Autonomous Driving Index $250mm$125mm$1mm$200k$600k$150mm$500k
BlueStar Global 5G Connectivity Index $150mm$75mm$1mm$200k$600k$150mm$250k
BlueStar Global 5G Connectivity Index - MNOs $20bn$10bn$1mm$200k$600k$20bn$250k
BlueStar Global 5G Connectivity Index - REITs $1bn$500mm$1mm$200k$600k$1bn$250k

*At a review and as of the previous two quarters.

** In at least two of the last three quarters.

*** In at least one of the last three quarters.

For all the indices above, the average-traded monthly shares (AMTS) will follow standard investability rules defined in section 2.2.1.


  • Changes to Selection Procedure for Indices that target a percent of the investable universe:

Target %*
Upper
Buffer**
Lower
Buffer***
Min.
Number of
Components
BlueStar Fintech Index 98%95%99.5%50
BlueStar Robotics Index****
Tier 1: Robots/Manufacturing Equipment 98%95%99.5%30
Tier 2: Machine Vision/Manufacturing Software 98%95%99.5%20
Tier 3: Embedded Machine Learning Chips, Robotic Surgical Systems, Semiconductor Manufacturing Systems 98%95%99.5%10
BlueStar Total Security Index****
Tier 1: Defense 98%95%99.5%30
Tier 2: Cyber Security 98%95%99.5%30
Tier 3: Actionable Intelligence 98%95%99.5%15
BlueStar E-Games Index 98%95%99.5%60
BlueStar E-Healthcare Index 98%95%99.5%50
BlueStar Electric Vehicle Industry Index 98%95%99.5%35

*Minimum percentage of the investable universe that is included in the index.

**Threshold of percentage of the investable universe that new entrants must fall within to be added to the index.

***Threshold of percentage of the investable universe that current components must fall outside of to be removed from the index.

****The selection procedure is run on each tier separately, companies selected from each tier are then combined to comprise the index component list.


  • Changes to Selection Procedure for Indices that target a number of index components:

Index
Min.
Components*
Target
Number of
Components
Upper
Buffer
Lower
Buffer
BlueStar Top 10 US Banks Index 1010815
BlueStar Europe Travel and Vacation Index 25504060
BlueStar Asia Travel and Vacation Index 35504060
BlueStar Travel and Vacation Index 50504060

*For indices where the minimum number of components is different than the target number of components: if the number of eligible components is less than the target, the index will include all eligible components such that the number of index components is at least equal to the minimum number of components. In case the number of eligible companies is below the minimum number of components, additional companies are added by the Index Owner’s decision until the number of stocks equals the minimum number of components.

These indices target a specified number of components. First, eligible companies ranking at or above the upper buffer, in terms of float-adjusted market capitalization, are selected. The remaining components are selected from current index components that rank between the upper and lower buffers.


The following changes will be made to the BlueStar US Machine Learning and Quantum Computing Index (ticker: BUQFC) and the BlueStar Machine Learning and Quantum Computing Index (ticker: BQTUM):

  • Quarterly fast-track entry for pure-play quantum computing companies: IPOs, post-merger SPACs, and spin-offs of companies that derive at least 50% of revenue or operating activity from quantum computing will be eligible to enter the index in March and September. Companies entering the index under this rule will receive an equal weight with the weight reduced proportionally from existing index components.

  • Update to selection procedure for pure-play quantum computing companies: The index will include 100% of eligible companies that derive at least 50% of revenue or operating activity from quantum computing.


Additional changes will be made to the following indices:


The amended Index Guides will be available for download at www.mvis-indices.com.

Kind Regards,

MV Index Solutions


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