MVIS Indices are investable indices, tailor-made for exchange-traded funds (ETFs). The index concept is built on three key factors: liquidity, pure-play exposure and diversification which, in combination, ensure the creation of investable index tools, particularly suited to underlie ETFs.
Demanding liquidity criteria are applied when potential index companies are screened.
Strict and Demanding Liquidity Criteria
Ineligible for inclusion are stocks which have had 10 or more non-trading days in a three-month period prior to a quarterly review and companies with a free-float of less than 10.00%. Each MVIS Index component must meet the following liquidity requirements:Market Capitalisation
- A full market capitalisation exceeding 150 million USD;
- A three-month average daily trading volume of at least 1 million USD at the actual review date (1);
- A three-month average daily trading volume of at least 1 million USD at the previous two reviews (2) (3) of an actual review.
- At last 250,000 shares traded per month over the last six months at the actual review date (1);
- At last 250,000 shares traded per month at the previous two reviews (2) (3) of an actual review.
The table shows the results of the liquidity screening for the index components Gazprom OAO (US3682872078, MVIS Russia Index) and Infosys (US4567881085, MVIS India Index).
Component Selection Criteria for the MVIS Russia Index and the MVIS India Index(example values based on previous index reviews)
|Full Market Capitalisation||USD 150,000,000||USD 102,029,060,115||USD 31,020,238,848|
|Average daily trading volume (1)||USD 1,000,000||USD 219,592,576||USD 64,312,484|
|Average daily trading volume (2)||USD 1,000,000||USD 179,601,888||USD 72,977,352|
|Average daily trading volume (3)||USD 1,000,000||USD 252,279,296||USD 97,013,440|
|Traded shares/month (1)||USD 250,000||USD 485,389,040||USD 28,901,928|
|Traded shares/month (2)||USD 250,000||USD 573,373,374||USD 39,050,540|
|Traded shares/month (3)||USD 250,000||USD 556,915,920||USD 42,910,660|