Investable Indexes
MarketVectorTM Indexes are investable Indexes, 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 a free-float of less than 10.00%. Each MarketVectorTM Index component must meet the following liquidity requirements:
Market Capitalization- A full market capitalization 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 YAMANA GOLD INC (CA98462Y1007, MVIS® Global Junior Gold Miners Index) and KINROSS GOLD CORP (CA4969024047, MVIS® Global Junior Gold Miners Index).
Component Selection Criteria for the MVIS® Global Junior Gold Miners Index
(example values based on previous index reviews)
| Criteria | Required | YAMANA GOLD INC | KINROSS GOLD CORP |
|---|---|---|---|
| Full Market Capitalisation | USD 150,000,000 | USD 4,901,118,000 | USD 4,596,912,000 |
| Average daily trading volume (1) | USD 1,000,000 | USD 72,787,106 | USD 62,702,401 |
| Average daily trading volume (2) | USD 1,000,000 | USD 99,290,352 | USD 67,110,136 |
| Average daily trading volume (3) | USD 1,000,000 | USD 101,344,629 | USD 77,073,184 |
| Traded shares/month (1) | USD 250,000 | USD 359,481,030 | USD 343,886,384 |
| Traded shares/month (2) | USD 250,000 | USD 436,906,854 | USD 412,616,397 |
| Traded shares/month (3) | USD 250,000 | USD 438,712,041 | USD 438,416,229 |
| Free-Float | 10% | 89% | 73% |