Pure-Play
In today's globalised economies, company revenues and assets are no longer primarily derived from the country of origin (where a company is incorporated) or from just one business sector. The unique MarketVectorTM pure-play concept reflects this development and responds to changing economic landscapes. It also opens up markets that are traditionally difficult to access.
Pure-Play Exposure on a Country or Regional Level
Local exposure is expanded to include non-local companies that generate at least 50% of their revenues (or, where applicable, assets) in the target country or region.
Pure-Play Exposure on a Sector Level
To achieve pure sector exposure, companies included in a MarketVectorTM sector index must generate at least 50% of their revenues (or, where applicable, assets) from the target sector.
Pure-Play Selection Criteria
(example values based on previous index reviews)
| Country | |
|---|---|
| Company | Capricorn Energy PLC |
| Incorporated | United Kingdom |
| Total Revenues in 2021 | USD 57,100,000 |
| Revenues in index country | USD 56,200,000 |
| % of Total Revenues | 98% |
| Sector | |
|---|---|
| Company | NVIDIA |
| Incorporated | United States |
| Total Revenues in 2022 | USD 26,914,000,000 |
| Revenues in index sector | USD 26,914,000,000 |
| % of Total Revenues | 100% |
The table above illustrates an example of the pure-play concept applied on a country and sector level, i.e. for the MVIS® Egypt Index (Capricorn Energy PLC) and the MVIS® US Listed Semiconductor 25 Index (NVIDIA).
Capricorn Energy PLC as a non-local component meets the pure-play requirements as well as all other selection as defined in the MVIS® Global Equity Index Guide, and is selected for the MVIS® Egypt Index.
NVIDIA also fulfills the pure-play rule and all other rules in the index selection process and is selected for the MVIS® US Listed Semiconductor 25 Index.