Dow Jones Global Indices

Methodology

October 2020
S&P Dow Jones Indices: Index Methodology
Table of Contents
Introduction 3
Index Objective 3
Dow Jones U.S. Indices 4
Supporting Documents 5
Eligibility Criteria 6
Country Inclusion Criteria 6
Country Classification 6
Identifying the Broad Market 6
Index Eligibility 6
Multiple Classes of Stock 8
Index Construction 9
Constituent Selection 9
Constituent Weightings 11
Public Shares Available to Foreign Investors 11
Index Calculations 11
Index Maintenance 12
Rebalancing 12
Additions 12
Deletions 12
Corporate Actions 13
Currency of Calculation and Additional Index Return Series 13
Investable Weight Factor (IWF) 13
Other Adjustments 13
Base Dates and History Availability 13
Index Data 14
Calculation Return Types 14
Index Governance 15
Index Committee 15

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 1

Index Policy 16
Announcements 16
Pro-forma Files 16
Holiday Schedule 16
Rebalancing 16
Unexpected Exchange Closures 16
Recalculation Policy 16
Contact Information 16
Index Dissemination 17
Tickers 17
Index Data 17
Web site 17
Appendix I – Base Dates and History Availability 18
Appendix II - Tickers 19
Global/Regional Indices 19
U.S. Indices 21
Canada Select Style Indices 22
Appendix III – Dow Jones U.S. and Canada Select Style Indices 23
Dow Jones U.S. Style Indices 23
Dow Jones Canada Select Style Indices 23
Style Evaluation Criteria and Index Classification 23
Appendix IV – Real Estate Indices 25
Index Relationship Hierarchy 25
Appendix V – Methodology Changes 26
Disclaimer 29

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 2

Introduction
Index Objective

The Dow Jones Global Indices (DJGI) family is a comprehensive, rules-based index designed to measure
global stock market performance. Included in the Dow Jones Global Indices family are a wide range of
regional, country, size-segment, and sector indices. The indices are float-adjusted market capitalization
(FMC) weighted, with caps applied to certain indices within the family to ensure diversification among
companies within those indices.

Regional Indices. Following are some of the more commonly referenced regional indices within the Dow
Jones Global Indices family:
• Americas Index • Emerging Markets Index
• Asia/Pacific Index • Europe Index
• Developed Markets ex-North America Index • Global ex-U.S. Index
• Developed Markets Index • Latin America Index

Country Indices. Countries are categorized as either developed or emerging for the purpose of stock
selection. The selection methodology creates indices that cover 95% of FMC, of eligible securities, at the
country level. For developed Europe and Israel, the selection methodology creates indices that represent
95% of FMC, of eligible securities, at the regional level. The Dow Jones Global Indices family currently
includes country indices for the following markets:

Developed Markets
Australia Finland* Israel Netherlands* Spain*
Austria* France* Italy* Norway* Sweden*
Belgium* Germany* Japan Portugal* Switzerland*
Canada Hong Kong Luxembourg* Singapore U.K.*
Denmark* Ireland* New Zealand South Korea U.S.
* Developed European countries

Emerging Markets
Brazil Egypt Kuwait Philippines South Africa
Chile Greece Malaysia Poland Taiwan
China* Hungary Mexico Qatar Thailand
Colombia India Pakistan Russia Turkey
Czech Republic Indonesia Peru Saudi Arabia+ UAE
* Prior to September 23, 2019, only overseas share listings of mainland Chinese companies such as H shares, red chips, China
DRs, and U.S.-listed Chinese stocks were eligible. Effective with the September 2019 reconstitution, China A-Shares that trade
through the Northbound Trading Segment of the Shanghai-Hong Kong or the Shenzhen-Hong Kong Stock Connect Program are
eligible using a specified FMC percentage of 25% in consideration of the foreign investment limits for Chinese companies.
+ Eligible stocks are included using a specified FMC percentage of 50% in March 2019 and 100% beginning in September 2019.

Size-Segment Indices. Large-cap, mid-cap, and small-cap indices are available at the global level, and
for each country and region. The top 70% of stocks by FMC are included in the large-cap index, the next
20% make up the mid-cap index, and the next 10% are included in the small-cap index, subject to the
buffers described in Index Construction.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 3

Sector Indices. The Dow Jones Global Indices family includes a comprehensive series of global sector
indices, as well as sector indices for each country and region. Sectors are defined based on a proprietary
classification system, which includes 10 broad Industries, 20 Supersectors, 41 Sectors, and at the most
granular level, 114 Subsectors. More information on the proprietary classification system, including the
complete sector definitions, can be found at www.spdji.com.

Dow Jones U.S. Indices

Dow Jones U.S. Index. The index measures the performance of the U.S. stock market. The index is
composed of 95% of U.S. stocks by FMC, subject to minimum liquidity requirements.

Size-Segment Indices. The following size-segment indices categorize stocks based on FMC. The top
70% of U.S. stocks are included in the large-cap index, the next 20% make up the mid-cap index, and the
next 10% are included in the small-cap index.
• U.S. Large-Cap Index • U.S. Small-Cap Index
• U.S. Mid-Cap Index

Sector Indices. A comprehensive family of U.S. sector indices is available. Most widely used are the 10
Dow Jones U.S. Industry Indices:
• U.S. Basic Materials Index • U.S. Industrials Index
• U.S. Consumer Goods Index • U.S. Oil & Gas Index
• U.S. Consumer Services Index • U.S. Technology Index
• U.S. Financials Index • U.S. Telecommunications Index
• U.S. Health Care Index • U.S. Utilities Index

More granular indices are also available for the 20 Supersectors, 41 Sectors, and 114 Subsectors, as
defined by the proprietary classification system.

Capped Sector Indices. Index constituents are drawn from the underlying sector index. The indices are
FMC weighted, subject to a specific capping methodology as defined in Index Construction.
• Dow Jones U.S. Consumer Services Capped Index
• Dow Jones U.S. Financials Capped Index
• Dow Jones U.S. Technology Capped Index
• Dow Jones U.S. Real Estate Capped Index

Dow Jones U.S. Financial Services Index. The index is a subset of the Dow Jones U.S. Index and
measures the performance of a uniquely defined financial services sector. The index includes
constituents of the Dow Jones U.S. Index classified in the subsectors listed below. The index includes
large, mid, and small-cap stocks.

Eligible Subsectors (Codes)

Banks (8355) Specialty Finance (8775)
Asset Managers (8771) Investment Services (8777)
Consumer Finance (8773) Mortgage Finance (8779)

If, after a subsector classification change, a stock does not belong to an eligible subsector, the stock is
removed from the index at that time. Similarly, if a stock’s subsector classification changes to an eligible
subsector, the stock will be considered for index inclusion at that time.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 4

Supporting Documents

This methodology is meant to be read in conjunction with supporting documents providing greater detail
with respect to the policies, procedures and calculations described herein. References throughout the
methodology direct the reader to the relevant supporting document for further information on a specific
topic. The list of the main supplemental documents for this methodology and the hyperlinks to those
documents is as follows:

Supporting Document URL

S&P Dow Jones Indices’ Equity Indices Policies
Equity Indices Policies & Practices
& Practices Methodology
S&P Dow Jones Indices’ Index Mathematics
Index Mathematics Methodology
Methodology
S&P Dow Jones Indices’ Float Adjustment
Float Adjustment Methodology
Methodology
S&P Dow Jones Indices’ Country Classification
Country Classification Methodology
Methodology

This methodology was created by S&P Dow Jones Indices to achieve the aforementioned objective of
measuring the underlying interest of each index governed by this methodology document. Any changes to
or deviations from this methodology are made in the sole judgment and discretion of S&P Dow Jones
Indices so that the index continues to achieve its objective.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 5

Eligibility Criteria
Country Inclusion Criteria

Securities issued by companies domiciled in countries classified as developed or emerging markets are
eligible for inclusion in the Dow Jones Global Indices. S&P Dow Jones Indices conducts a rigorous
country classification process to evaluate the status of global markets.

Country Classification

S&P Dow Jones Indices uses a combination of quantitative criteria, along with the opinions and
experiences of global investors, as a guide to classifying countries as developed, emerging, or frontier
markets.

For more information, please refer to the S&P Dow Jones Indices Country Classification Methodology.

Identifying the Broad Market

Assigning Companies to Their Market Universes. Each company, including multinationals, is

assigned to the country of its primary market listing, which typically is its country of incorporation. In some
cases, such as where there is no readily accessible home equity market or where a company is domiciled
in one country solely for tax or regulatory purposes but is headquartered in another country, the company
may be included in the index universe for the country of its primary equity market.

For more information, please refer to the Domiciles section of S&P Dow Jones Indices’ Equity Indices
Policies & Practices document.

Index Eligibility

Eligible for selection are all equity securities that trade on the major exchanges of these countries,
screened for share class and liquidity. For emerging countries with significant barriers to direct foreign
investment, S&P Dow Jones Indices may opt to include issues directly listed on U.S. exchanges,
Depository Receipts (DRs), and other types of offshore listings.

Dow Jones U.S. Indices. The eligible universe is defined as all stocks traded on the major U.S. stock
exchanges, minus any non-common issues and illiquid stocks.

Dow Jones Canada Select Style Indices. The Dow Jones Canada Select Style Indices are derived
from the Dow Jones Canada Index, which aims to consistently represent 95% of the market capitalization
of eligible stocks traded in Canada. Only stocks that are categorized as large-caps and mid-caps (those
within the top 90% of market capitalization) are included in the universe for the Select Growth and Value
Indices. To be considered for index inclusion, non-constituent stocks must have a minimum three-month
average daily value traded of US$ 1 million. Stocks are weighted by FMC, subject to a 10% cap.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 6

Ineligible Securities. The following shares are not eligible for inclusion in the Dow Jones Global Indices:
• Fixed-dividend shares • Business Development Companies (BDCs)
• Investment Trusts • Closed-end Funds
• Unit Trusts • Convertible Bonds
• Mutual Fund Shares • Limited Partnerships
• Equity Warrants • Limited liability companies (LLCs)
• ETFs • ETNs

Share Class. Index candidates must be common shares or other securities that have the characteristics
of common equities. All classes of common shares, both fully and partially paid, are eligible. Fixed-
dividend shares and securities such as convertible notes, warrants, rights, mutual funds, unit investment
trusts, closed-end fund shares, shares in limited partnerships, and business development companies
(BDCs) are not eligible. Temporary issues arising from corporate actions, such as “when-issued shares,”
are considered on a case-by-case basis when necessary to maintain continuity in a company’s index
membership. Real estate investment trusts (REITs), listed property trusts (LPTs), and similar real-
property-owning pass-through structures taxed as REITs by their domiciles are eligible. In Canada,
income trusts, including Canadian REITs, are eligible, however, income-participating securities, which
combine stock and debt ownership, are not.

For more information, please refer to S&P Dow Jones Indices’ Equity Indices Policies & Practices
Methodology.

Liquidity. Each stock must meet two separate liquidity criteria to be considered eligible for inclusion:
• 12-Month Median Value Traded Ratio (MVTR). Stocks must have a MVTR of at least 10% for
emerging markets or 20% for developed markets. Current constituents remain eligible if they
have a MVTR of at least 7% for Emerging Markets or 14% for Developed Markets.
This ratio is calculated by taking the median daily value traded amount for each of the 12 months
preceding the rebalancing reference date, multiplying the amount by the number of days that the
stock traded during that month, and then dividing by its end-of-month FMC. The sum of the 12
monthly values is the MVTR for that stock. If a stock has traded for less than 12 months, the
average of the available monthly values is taken and multiplied by 12.
• 6-Month Median Daily Value Traded (MDVT). Stocks must have a MDVT over the six months
prior to the rebalancing reference date of at least US$ 100,000 for emerging markets or US$
250,000 for developed markets. Current constituents remain eligible if they have a MDVT of at
least US$ 70,000 for emerging markets or US$ 175,000 for developed markets.
If a stock has traded for less than six months, the MDVT amount for as long as the stock has
been trading is used.

Initial Public Offerings (IPOs). IPOs must have a trading history of at least three months, as of the
reference date, in order to be eligible for index inclusion.

Certain large IPOs may be eligible for fast track entry, subject to the following conditions:
• Only newly public IPOs and direct placement listings will be considered eligible for fast track
entry. Formerly bankrupt companies that switch from Over-the-Counter Exchange (“OTC”) or a
non-covered exchange to an S&P Dow Jones Indices covered exchange are ineligible.
• Fast track IPO additions must meet a minimum FMC threshold of US$ 2 billion, calculated using
the shares offered (excluding over-allotment options) and the closing price on the first day of

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 7

 trading on an eligible exchange.1 The threshold level is reviewed from time to time and updated
as needed to assure consistency with market conditions.
• In addition, the IPO will need to meet all other applicable index eligibility rules except for the
liquidity requirements. If all necessary public information is available, S&P Dow Jones Indices
verifies that the fast track conditions have been met. Once S&P Dow Jones Indices announces
that the IPO is eligible for fast track addition, it is added to the index with five business days
notice. At the discretion of the Index Committee, fast track IPO additions eligible to be added
during a quarterly rebalancing freeze period may instead be added on the rebalancing effective
date.

The size classification of a fast tracked IPO is determined using its total market capitalization as of the
first trading day and comparing the result to the total market capitalization of all index constituents within
the same country as of the previous reference date for quarterly sizing.

Multiple Classes of Stock

All publicly listed multiple share class lines are eligible for index inclusion, subject to meeting the eligibility
criteria. For more information regarding the treatment of multiple share classes, please refer to Approach
A within the Multiple Share Classes section of S&P Dow Jones Indices’ Equity Indices Policies &
Practices Methodology.

1
WM/Reuters foreign exchange rates taken daily at 4:00 PM London Time will be used in the calculation of the IPO’s FMC for IPOs
denominated in currencies other than U.S. dollars. Please refer to Currency of Calculation and Additional Index Return Series for
more information about these rates.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 8

Index Construction
Constituent Selection

Stock selection is conducted at the country level for all markets excluding developed Europe and Israel.
For developed Europe and Israel, stock selection is conducted at the regional/aggregate level.

Selections are conducted as follows:

1. The eligible universe is sorted by company full market capitalization; stocks in the top 95% of the
eligible universe by FMC are selected as constituents for the broad country or regional index,
subject to a 2% buffer for current and non-current stocks. Current constituents remain eligible up
to the 97th percentile as ranked by FMC. Non-constituents are eligible up to the 93rd percentile
as ranked by FMC.
2. The constituents of the broad country or regional index are re-ranked by full market capitalization
and categorized into size classes as follows:
The sum of the full market capitalizations of stocks above the 70th percentile is established as the
cutoff for large-caps. Stocks falling above the cut-off are designated as large-caps.
The sum of the full market capitalizations of stocks above the 90th percentile is established as the
cutoff for mid-caps. Stocks falling below the large-cap cut-off, but above the mid-cap cut-off are
designated as mid-caps.
Remaining stocks are designated as small-caps.
• TopCaps are defined as large-caps plus mid-caps.
• LowCaps are defined as mid-caps plus small-caps.
The following size buffers are applied:
• Current large-cap constituents that rank above the 75th percentile are retained in the
large-cap index.
• Current mid-cap constituents that rank between the 67.5th and 92.5th percentiles are
retained in the mid-cap index.
• Current mid-cap or small-cap constituents that rank above the 67.5th percentile are
reclassified into the large-cap index.
• Current small-cap constituents that rank above the 85th percentile are reclassified into the
mid-cap index.
3. The sizes for new companies (IPOs) are assigned based on full market capitalization as follows:
• Large-cap companies must fall in the top 70%, mid-cap companies must fall in the next 20%,
and the final 10% are small-cap companies. Sizing for IPOs additions that take place at the
quarterly updates follow the same process as at the reconstitution, absent any buffering.

Sector and Industry Indices. The sector and industry indices are constructed by categorizing the
constituent stocks of the parent index (e.g. Dow Jones U.S. Index) into the 10 Industries, 20
Supersectors, 41 Sectors and 114 Subsectors, as defined by a proprietary classification system used by
S&P Dow Jones Indices. A separate index is maintained for each group at each of the four levels.
Companies are classified into Subsectors, the most specific level of classification, based on their primary
source of revenue. The Subsectors are rolled up into Sectors, which in turn are rolled up into
Supersectors, and finally into Industries, the broadest level of classification.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 9

Capped Sector Indices. Index compositions of the Capped Sector Indices are the same as the relevant
sector index. Constituent changes are incorporated in the indices as and when they are made in the
relevant sector index. Please note, except for spin-offs, any addition not coinciding with a reweighting
effective date will be added to the relevant Capped Sector Index with the largest Additional Weight Factor
(AWF) currently represented in that index.

For more information on AWFs, please refer to the Capped Market Capitalization Weighted Indices
section of S&P Dow Jones Indices’ Index Mathematics Methodology.

Company Aggregate Daily Dynamic Daily Trigger

Industry or
Index Cap Cap Capping Trigger Threshold
Supersector
Dow Jones U.S. Consumer Consumer Services
Services Capped Index Industry (Code 10% 4.5%/22.5% Yes 5%/25%
5000)
Dow Jones U.S. Financials Financials Industry
10% 4.5%/22.5% Yes 5%/25%
Capped Index (Code 8000)
Dow Jones U.S. Real Real Estate
Estate Capped Index Supersector (Code 10% 4.5%/22.5% Yes 5%/25%
8600)
Dow Jones U.S. Technology Industry
22.5% 4.5%/45% No n/a
Technology Capped Index (Code 9000)

Each index is capped market capitalization weighted. For capping purposes, the indices are rebalanced
quarterly after the close of business on the third Friday of March, June, September, and December. The
reference date for capping is the Wednesday prior to second Friday of the rebalancing month.

Certain Capped Sector Indices are also reviewed daily based on each company’s capped market
capitalization weight. Daily capping is only performed when the sum of companies with weight greater
than 5% exceeds 25%. When daily capping is necessary, the changes are announced after the close of
the business day on which the daily weight caps are exceeded, with the reference date after the close of
that same business day, and changes are effective after the close of the next trading day. While capping
is reviewed daily, the index may be capped on a less frequent basis. Both the quarterly and daily capping
process are performed according to the following procedures:
1. With prices reflected on the rebalancing price reference date, adjusted for any applicable
corporate actions, and membership, shares outstanding, and IWFs as of the rebalancing effective
date, each company is weighted by FMC. Modifications are made as defined below.
2. If any company’s weight exceeds the company cap, that company’s weight is capped at the
company cap weight and all excess weight is proportionally redistributed to all uncapped
companies within the index. If, after this redistribution, any company breaches the weight cap the
process is repeated iteratively until no company breaches the company capping rule.
3. Then, the aggregate weight of the companies with weight greater than 4.5% cannot exceed the
aggregate cap of the total index weight.
4. If the rule in step 3 is breached, all the companies are ranked in descending order of their weights
and the company with the smallest weight above 4.5% is identified. The weight of this company
is, then, reduced either until the rule in step 3 is satisfied or it reaches 4.5%.
5. This excess weight is proportionally redistributed to all companies with weights below 4.5%. Any
company that receives weight cannot breach the 4.5% cap. This process is repeated iteratively
until step 3 is satisfied.
6. Index share amounts are assigned to each constituent to arrive at the weights calculated above.
Since index shares are assigned based on prices prior to rebalancing, the actual weight of each
constituent at the rebalancing differs somewhat from these weights due to market movements.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 10

Constituent Weightings

Except for the Dow Jones Canada Select Style Indices and Dow Jones Capped Sector Indices, the
indices are weighted by FMC. For the Dow Jones Canada Select Style Indices, individual stocks are
subject to a 10% weight cap. For the Dow Jones Capped Sector Indices, the indices employ a capped
market capitalization weighting scheme and specific capping methodology as defined in Index
Construction.

Public Shares Available to Foreign Investors

If an individual stock’s foreign investment limit is very stringent and the stock is in high demand among
global investors, then frequently the amount available to foreign investors is quickly reached.

For the Philippines, UAE, Qatar, and Saudi Arabia, S&P Dow Jones Indices reviews not only the
theoretical foreign investment limits applicable to companies (as calculated through S&P Dow Jones
Indices’ Investable Weight Factor (IWF)), but also the practical available limit (as defined by the known
shares actually available to foreign investors). S&P Dow Jones Indices also reviews the practical
available limit for companies in certain industries with foreign investment limits in South Korea and
Taiwan.

If the practical available limit for an existing constituent falls below 5% then it will be removed from the
index at the next quarterly rebalancing. A stock can be added only if the practical available limit is 10% or
more. All stocks are reviewed for this at each rebalancing.

For China (A-Shares) and India, S&P Dow Jones Indices monitors the practical available limit for
companies on an ongoing basis. At each rebalancing, existing constituents whose remaining practical
available limits have dropped below 4% (China A-Shares) and 3% (India), are removed. A stock can be
added only if the practical available limit is above these levels at the time of addition.

Additionally, if the practical available limit for an existing constituent from India is breached (falls to zero),
or an existing constituent China A-Share falls below 2%, then it will be removed from the index with two to
five business days’ notice.

Please refer to S&P Dow Jones Indices’ Float Adjustment Methodology for a detailed description of float
adjustments, foreign investment limits, and S&P Dow Jones Indices’ Investable Weight Factor (IWF).

Index Calculations

The indices are calculated by means of the divisor methodology used in all S&P Dow Jones Indices’
equity indices.

For more information on the index calculation methodology, please refer to S&P Dow Jones Indices’
Index Mathematics Methodology.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 11

Index Maintenance
Rebalancing

Annual Reconstitution. The indices are reconstituted annually in September. The process includes the
review of all stocks in their respective markets to determine eligibility according to the existing criteria.
The reference date for data used in the Annual Reconstitution is the last business day in July. In addition,
the investable weight factor (IWF) for each stock is reviewed and updated as needed. Changes are
implemented at the opening of trading on the Monday following the third Friday of September.

Quarterly Updates. Changes to shares and IWFs are implemented at the open of trading on the
Monday following the third Friday of March, June, and December. Size classification is reviewed as part
of the quarterly update, with the reference date for size classification being five weeks prior to the
rebalancing effective date.

For more information, please refer to S&P Dow Jones Indices’ Equity Indices Policies & Practices
Methodology.

Additions

Generally no companies are added to an index between annual reconstitutions except for IPOs and spin-
offs as described in the previous section. Any exceptions to this rule are announced to clients with ample
lead time. Any stocks considered for addition at the quarterly rebalancing must have a FMC larger than
the smallest stock included in the given market index at the time of the previous reconstitution.

Initial Public Offerings (IPOs). IPOs and new listings on eligible exchanges are added to their
respective country indices at the next quarterly update if the new listing meets all eligibility requirements.
The reference date for IPO inclusions is five weeks prior to the effective rebalancing date and additions
are effective at the open of Monday following the third Friday of March, June, September and December.

Deletions

Between rebalancings, a company can be deleted from an index due to corporate events such as
mergers, acquisitions, takeovers, delistings or bankruptcies.
• Whenever possible, changes in the index’s constituents are announced at least two business
days prior to their implementation date.
• If an index constituent is suspended by its primary market, it may be removed from the index at
the discretion of the Index Committee.
• Whenever practicable, S&P Dow Jones Indices will use the best-available alternate pricing
source to determine the value at which the company should be removed from the index.
• Current China A-Share index constituents with a “Special Treatment” designation are removed
with two to five business days’ notice. Once a stock’s “Special Treatment” designation is lifted, it
will become eligible for inclusion again.
• Current China A-Shares index constituents that are removed from the Stock Connect Program
and are no longer available to foreign investors will be removed from the index with two to five
business days’ notice. A company may be removed from the index at the discretion of the Index
Committee.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 12

 • Current Taiwanese index constituents with an “Altered Trading Method” designation are removed
with two to five business days’ notice. Once a stock’s “Altered Trading Method” designation is
lifted, it will become eligible again for inclusion.

Corporate Actions

Corporate actions (such as stock splits, stock dividends, spin-offs and rights offerings) are applied after
the close of trading on the day prior to the ex-date. Share changes resulting from exchange offers are
applied on the ex-date.

Spin-offs. The spun-off company is added to all indices of which the parent is a constituent, at a zero
price at the market close of the day before the ex-date (with no divisor adjustment). If a spun-off company
is determined not to be eligible to remain in the index, it will be removed after at least one day of regular
way trading (with a divisor adjustment). Spin-offs are assigned the same size and style as the parent
company at the time of the event. All spin-off sizes are evaluated at the next quarterly update.

For more information, please refer to S&P Dow Jones Indices’ Equity Indices Policies & Practices
Methodology.

Currency of Calculation and Additional Index Return Series

The indices are calculated in U.S. dollars. Country indices are also calculated in local currency, except for
China which is calculated in Hong Kong dollars. In addition, certain indices are also available in euros.

Real-time spot Forex rates, as supplied by Reuters, are used for ongoing index calculation of real-time
indices.

WM/Reuters foreign exchange rates are taken daily at 4:00 PM London Time and used in the end-of-day
calculation of the indices. These mid-market fixings are calculated by The WM Company based on
Reuters data and appear on Reuters pages WMRA.

In addition to the indices detailed in this methodology, additional return series versions of the indices may
be available, including, but not limited to: currency, currency hedged, decrement, fair value, inverse,
leveraged, and risk control versions. For a list of available indices, please refer to S&P DJI's All Indices by
Methodology Report.

For information on the calculation of different types of indices, please refer to S&P Dow Jones Indices’
Index Mathematics Methodology.

For the inputs necessary to calculate certain types of indices, including decrement, dynamic hedged, fair
value, and risk control indices, please refer to the Parameters documents available at www.spdji.com.

Investable Weight Factor (IWF)

Please refer to S&P Dow Jones Indices’ Float Methodology for details.

Other Adjustments

In cases where there is no achievable market price for a stock being deleted, it can be removed at a zero
or minimal price at the Index Committee’s discretion, in recognition of the constraints faced by investors in
trading bankrupt or suspended stocks.

Base Dates and History Availability

Please refer to Appendix I for further information.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 13

Index Data
Calculation Return Types

S&P Dow Jones Indices calculates multiple return types which vary based on the treatment of regular
cash dividends. The classification of regular cash dividends is determined by S&P Dow Jones Indices.
• Price Return (PR) versions are calculated without adjustments for regular cash dividends.
• Gross Total Return (TR) versions reinvest regular cash dividends at the close on the ex-date
without consideration for withholding taxes.
• Net Total Return (NTR) versions, if available, reinvest regular cash dividends at the close on the
ex-date after the deduction of applicable withholding taxes.

In the event there are no regular cash dividends on the ex-date, the daily performance of all three indices
will be identical.

For a complete list of indices available, please refer to the daily index levels file (“.SDL”).

For more information on the classification of regular versus special cash dividends as well as the tax rates
used in the calculation of net return, please refer to S&P Dow Jones Indices’ Equity Indices Policies &
Practices Methodology.

For more information on the calculation of return types, please refer to S&P Dow Jones Indices’ Index
Mathematics Methodology.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 14

Index Governance
Index Committee

The Dow Jones Global Indices are maintained by an S&P Dow Jones Indices’ Index Committee. All
committee members are full-time professional members of S&P Dow Jones Indices’ staff. The committee
meets regularly. At each meeting, the Index Committee may review pending corporate actions that may
affect index constituents, statistics comparing the composition of the indices to the market, companies
that are being considered as candidates for addition to an index, and any significant market events. In
addition, the Index Committee may revise index policy covering rules for selecting companies, treatment
of dividends, share counts or other matters.

S&P Dow Jones Indices considers information about changes to its indices and related matters to be
potentially market moving and material. Therefore, all Index Committee discussions are confidential.

S&P Dow Jones Indices’ Index Committees reserve the right to make exceptions when applying the
methodology if the need arises. In any scenario where the treatment differs from the general rules stated
in this document or supplemental documents, clients will receive sufficient notice, whenever possible.

In addition to the daily governance of indices and maintenance of index methodologies, at least once
within any 12-month period, the Index Committee reviews the methodology to ensure the indices continue
to achieve the stated objectives, and that the data and methodology remain effective. In certain instances,
S&P Dow Jones Indices may publish a consultation inviting comments from external parties.

For information on Quality Assurance and Internal Reviews of Methodology, please refer to S&P Dow
Jones Indices’ Equity Indices Policies & Practices Methodology.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 15

Index Policy
Announcements

All index constituents are evaluated daily for data needed to calculate index levels and returns. All events
affecting the daily index calculation are typically announced advance via the Index Corporate Events
report (SDE), delivered daily to all clients. Any unusual treatment of a corporate action or short notice of
an event may be communicated via email to clients.

Pro-forma Files

In addition to the corporate events file (.SDE), S&P Dow Jones Indices provides constituent pro-forma
files each time the indices rebalance. The pro-forma file is typically provided daily in advance of the
rebalancing date and contains all constituents and their corresponding weights and index shares effective
for the upcoming rebalancing. Since index shares are assigned based on prices seven business days
prior to the rebalancing, the actual weight of each stock at the rebalancing differs from these weights due
to market movements.

Please visit www.spdji.com for a complete schedule of rebalancing timelines and pro-forma delivery
times.

Holiday Schedule

The Dow Jones Global Indices are calculated on all business days of the year.

A complete holiday schedule for the year is available at www.spdji.com.

Rebalancing

The Index Committee may change the date of a given rebalancing for reasons including market holidays
occurring on the scheduled rebalancing date. Any such change will be announced with proper advance
notice where possible.

Unexpected Exchange Closures

For information on Unexpected Exchange Closures, please refer to S&P Dow Jones Indices’ Equity
Indices Policies & Practices Methodology.

Recalculation Policy

For information on the recalculation policy, please refer to S&P Dow Jones Indices’ Equity Indices
Policies & Practices Methodology.

For information on Calculations and Pricing Disruptions, Expert Judgment and Data Hierarchy, please
refer to S&P Dow Jones Indices’ Equity Indices Policies & Practices Methodology.

Contact Information

For any questions regarding an index, please contact: index_services@spglobal.com.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 16

Index Dissemination
Index levels are available through S&P Dow Jones Indices’ Web site at www.spdji.com, major quote
vendors, numerous investment-oriented Web sites, and various print and electronic media.

Tickers

Please refer to Appendix II for Bloomberg and Reuters tickers.

Index Data

Daily constituent and index level data are available via subscription.

For product information, please contact S&P Dow Jones Indices, www.spdji.com/contact-us.

Web site

For further information, please refer to S&P Dow Jones Indices’ Web site at www.spdji.com.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 17

Appendix I – Base Dates and History
Availability
Index history availability, base dates and base values are shown in the table below.

Launch First Value Base

Indices Date Date Base Date Value
Global/Regional Indices
Dow Jones Americas Indices 09/18/2000 12/31/1991 12/31/1991 100
Dow Jones Asia/Pacific Indices 09/18/2000 12/31/1991 12/31/1991 100
Dow Jones Developed Markets ex-North America Index 09/18/2000 12/31/1991 12/31/1991 100
Dow Jones Developed Markets Indices 09/18/2000 12/31/1991 12/31/1991 100
Dow Jones Emerging Markets Indices* 09/18/2000 12/31/1991 12/31/1991 100
Dow Jones Europe Indices* 09/18/2000 12/31/1991 12/31/1991 100
Dow Jones Global ex-U.S. Indices 09/18/2000 12/31/1991 12/31/1991 100
Dow Jones Global Indices 09/18/2000 12/31/1991 12/31/1991 100
Dow Jones Latin America Indices 05/28/1998 12/31/1991 12/31/1991 100
U.S. Indices
Dow Jones U.S. Index 02/14/2000 12/31/1991 12/31/1991 100
Dow Jones U.S. Indices: Size-Segment & Style Indices 02/14/2000 12/31/1991 12/31/1991 100
Dow Jones U.S. Indices: Industry Indices+ 02/14/2000 12/31/1991 12/31/1991 100
Dow Jones U.S. Diversified REITs Index 06/23/2008 06/20/2008 06/20/2008 100
Dow Jones U.S. Hotel & Lodging REITs Index 06/23/2008 06/20/2008 06/20/2008 100
Dow Jones U.S. Industrial & Office REITs Index 06/23/2008 06/20/2008 06/20/2008 100
Dow Jones U.S. Mortgage REITs Index 06/23/2008 06/20/2008 06/20/2008 100
Dow Jones U.S. Real Estate Holding & Development
06/23/2008 06/20/2008 06/20/2008 100
Index
Dow Jones U.S. Real Estate Index 02/14/2000 12/31/1991 12/31/1991 100
Dow Jones U.S. Real Estate Capped Index 10/26/2020 12/15/2000 04/12/2013 100
Dow Jones U.S. Real Estate Investment & Services Index 12/20/2004 12/31/1991 12/31/1991 100
Dow Jones U.S. Real Estate Investment Trusts Index 12/20/2004 12/19/2004 12/19/2004 100
Dow Jones U.S. Real Estate Services Index 06/23/2008 06/20/2008 06/20/2008 100
Dow Jones U.S. Residential REITs Index 06/23/2008 06/20/2008 06/20/2008 100
Dow Jones U.S. Retail REITs Index 06/23/2008 06/20/2008 06/20/2008 100
Dow Jones U.S. Specialty REITs Index 06/23/2008 06/20/2008 06/20/2008 100
Dow Jones U.S. Financial Services Index 02/14/2000 12/31/1991 12/31/1991 100
Dow Jones U.S. Consumer Services Capped Index 04/15/2019 12/17/2004 4/12/2013 169.74
Dow Jones U.S. Financials Capped Index 04/15/2019 12/17/2004 4/12/2013 71.34
Dow Jones U.S. Technology Capped Index 04/15/2019 12/17/2004 4/12/2013 150.48
Canada Select Style Indices
Dow Jones Canada Select Growth Index 11/03/2006 06/30/1997 06/30/1997 1,000
Dow Jones Canada Select Value Index 11/03/2006 06/30/1997 06/30/1997 1,000
* The Emerging Europe Index and its country indices have a base date of December 31, 2002.
+ Dates and values for sector indices may vary, depending upon when the individual Industry, Supersector, Sector and
Subsector indices were created.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 18

Appendix II - Tickers
The table below lists headline indices covered by this document. All versions of the below indices that
may exist are also covered by this document. Please refer to S&P DJI's All Indices by Methodology
Report for a complete list of indices covered by this document.

Global/Regional Indices
Dow Jones Americas Indices (Price Return) Bloomberg Reuters
Dow Jones Americas Index A1DOW .A1DOW
Industry Indices:
Basic Materials A1BSC .A1BSC
Consumer Goods A1NCY .A1NCY
Consumer Services A1CYC .A1CYC
Financials A1FIN .A1FIN
Health Care A1HCR .A1HCR
Industrials A1IDU .A1IDU
Oil & Gas A1ENE .A1ENE
Technology A1TEC .A1TEC
Telecommunications A1TLS .A1TLS
Utilities A1UTI .A1UTI

Dow Jones Asia/Pacific Indices (Price Return) Bloomberg Reuters

Dow Jones Asia/Pacific Index P1DOW .P1DOW
Size Segment Indices:
Dow Jones Asia/Pacific Large-Cap Index P1LRG .P1LRG
Dow Jones Asia/Pacific Mid-Cap Index P1MID .P1MID
Dow Jones Asia/Pacific Small-Cap Index P1SML .P1SML
Industry Indices:
Basic Materials P1BSC .P1BSC
Consumer Goods P1NCY .P1NCY
Consumer Services P1CYC .P1CYC
Financials P1FIN .P1FIN
Health Care P1HCR .P1HCR
Industrials P1IDU .P1IDU
Oil & Gas P1ENE .P1ENE
Technology P1TEC .P1TEC
Telecommunications P1TLS .P1TLS
Utilities P1UTI .P1UTI

Dow Jones Developed Markets ex-North America Index Bloomberg Reuters

Price Return DJDXNA .DJDXNA
Total Return DJDXNAT .DJDXNAT

Dow Jones Developed Markets Indices (Price Return) Bloomberg Reuters

Dow Jones Developed Markets Index -- .W3DOW
Size Segment Indices:
Dow Jones Developed Markets Large-Cap Index -- .W3LRG
Dow Jones Developed Markets Mid-Cap Index -- .W3MID
Dow Jones Developed Markets Small-Cap Index -- .W3SML
Industry Indices:
Basic Materials W3BSC .W3BSC
Consumer Goods W3NCY .W3NCY
Consumer Services W3CYC .W3CYC
Financials W3FIN .W3FIN
Health Care W3HCR .W3HCR
Industrials W3IDU .W3IDU
Oil & Gas W3ENE .W3ENE
Technology W3TEC .W3TEC
Telecommunications W3TLS .W3TLS
Utilities W3UTI .W3UTI

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 19

 Dow Jones Emerging Markets Indices (Price Return) Bloomberg Reuters
Dow Jones Emerging Markets Index -- .W5DOW
Industry Indices:
Basic Materials W5BSC .W5BSC
Consumer Goods W5NCY .W5NCY
Consumer Services W5CYC .W5CYC
Financials W5FIN .W5FIN
Health Care W5HCR .W5HCR
Industrials W5IDU .W5IDU
Oil & Gas W5ENE .W5ENE
Technology W5TEC .W5TEC
Telecommunications W5TLS .W5TLS
Utilities W5UTI .W5UTI

Dow Jones Europe Indices (Price Return) Bloomberg Reuters

Dow Jones Europe Index E1DOW .E1DOW
Industry Indices:
Basic Materials E1BSC .E1BSC
Consumer Goods E1NCY .E1NCY
Consumer Services E1CYC .E1CYC
Financials E1FIN .E1FIN
Health Care E1HCR .E1HCR
Industrials E1IDU .E1IDU
Oil & Gas E1ENE .E1ENE
Technology E1TEC .E1TEC
Telecommunications E1TLS .E1TLS
Utilities E1UTI .E1UTI

Dow Jones Global ex-U.S. Indices (Price Return) Bloomberg Reuters

Dow Jones Global ex-U.S. Index W2DOW .W2DOW
Size Segment Indices:
Dow Jones Global ex-U.S. Large-Cap Index -- .W2LRG
Dow Jones Global ex-U.S. Mid-Cap Index -- .W2MID
Dow Jones Global ex-U.S. Small-Cap Index -- .W2SML
Industry Indices:
Basic Materials W2BSC .W2BSC
Consumer Goods W2NCY .W2NCY
Consumer Services W2CYC .W2CYC
Financials W2FIN .W2FIN
Health Care W2HCR .W2HCR
Industrials W2IDU .W2IDU
Oil & Gas W2ENE .W2ENE
Technology W2TEC .W2TEC
Telecommunications W2TLS .W2TLS
Utilities W2UTI .W2UTI

Dow Jones Global Indices (Price Return) Bloomberg Reuters

Dow Jones Global Index W1DOW .W1DOW
Size Segment Indices:
Dow Jones Global Large-Cap Index -- .W1LRG
Dow Jones Global Mid-Cap Index -- .W1MID
Dow Jones Global Small-Cap Index -- .W1SML
Industry Indices:
Basic Materials W1BSC .W1BSC
Consumer Goods W1NCY .W1NCY
Consumer Services W1CYC .W1CYC
Financials W1FIN .W1FIN
Health Care W1HCR .W1HCR
Industrials W1IDU .W1IDU
Oil & Gas W1ENE .W1ENE
Technology W1TEC .W1TEC
Telecommunications W1TLS .W1TLS
Utilities W1UTI .W1UTI

Dow Jones Latin America Index Bloomberg Reuters

Price Return A3DOW .A3DOW

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 20

U.S. Indices
Dow Jones U.S. Indices Return Type Bloomberg Reuters
Dow Jones U.S. Index Price Return DJUS .DJUS
Size Segment and Style Indices:
Dow Jones U.S. Growth Index Price Return DJUSGR .DJUSGR
Dow Jones U.S. Value Index Price Return DJUSVA .DJUSVA
Dow Jones U.S. Large-Cap Index Price Return DJUSL .DJUSL
Total Return DJUSLTR .DJUSLTR
Dow Jones U.S. Large-Cap Growth Index Price Return DJUSGL .DJUSGL
Dow Jones U.S. Large-Cap Value Index Price Return DJUSVL .DJUSVL
Dow Jones U.S. Mid-Cap Index Price Return DJUSM .DJUSM
Dow Jones U.S. Mid-Cap Growth Index Price Return DJUSGM .DJUSGM
Dow Jones U.S. Mid-Cap Value Index Price Return DJUSVM .DJUSVM
Dow Jones U.S. Small-Cap Index Price Return DJUSS .DJUSS
Dow Jones U.S. Small-Cap Growth Index Price Return DJUSGS .DJUSGS
Dow Jones U.S. Small-Cap Value Index Price Return DJUSVS .DJUSVS
Industry Indices:
Basic Materials Price Return DJUSBM .DJUSBM
Total Return DJUSBMT .DJUSBMT
Consumer Goods Price Return DJUSNC .DJUSNC
Total Return DJUSNCT .DJUSNCT
Consumer Services Price Return DJUSCY .DJUSCY
Total Return DJUSCYT .DJUSCYT
Financials Price Return DJUSFN .DJUSFN
Total Return DJUSFNT .DJUSFNT
Health Care Price Return DJUSHC .DJUSHC
Total Return DJUSHCT .DJUSHCT
Industrials Price Return DJUSIN .DJUSIN
Total Return DJUSINT .DJUSINT
Oil & Gas Price Return DJUSEN .DJUSEN
Total Return DJUSENT .DJUSENT
Technology Price Return DJUSTC .DJUSTC
Total Return DJUSTCT .DJUSTCT
Telecommunications Price Return DJUSTL .DJUSTL
Total Return DJUSTLT .DJUSTLT
Utilities Price Return DJUSUT .DJUSUT
Total Return DJUSUTT .DJUSUTT
Real Estate Indices:
Dow Jones U.S. Diversified REITs Index Price Return DJUSDT .DJUSDT
Dow Jones U.S. Hotel & Lodging REITs Index Price Return DJUSHL .DJUSHL
Dow Jones U.S. Industrial & Office REITs Index Price Return DJUSIO .DJUSIO
Dow Jones U.S. Mortgage REITs Index Price Return DJUSMR .DJUSMR
Dow Jones U.S. Real Estate Holding & Development Index Price Return DJUSEH .DJUSEH
Dow Jones U.S. Real Estate Index Price Return DJUSRE .DJUSRE
Total Return DJUSRET .DJUSRET
Dow Jones U.S. Real Estate Investment & Services Index Price Return DJUSRH .DJUSRH
Capped Sector Indices:
Dow Jones U.S. Consumer Services Capped Index Price Return DJUSCYC .DJUSCYC
Total Return DJUSCYCT .DJUSCYCT
Dow Jones U.S. Financials Capped Index Price Return DJUSFNC .DJUSFNC
Total Return DJUSFNCT .DJUSFNCT
Dow Jones U.S. Technology Capped Index Price Return DJUSTCC .DJUSTCC
Total Return DJUSTCCT .DJUSTCCT
Dow Jones U.S. Real Estate Capped Index Price Return DJUSRCUP --
Total Return DJUSRCUT --

Dow Jones U.S. Indices Return Type Bloomberg Reuters

Real Estate Indices:
Dow Jones U.S. Real Estate Investment Trusts Index Price Return DJUSRI .DJUSRI
Dow Jones U.S. Real Estate Services Index Price Return DJUSES .DJUSES
Dow Jones U.S. Residential REITs Index Price Return DJUSRN .DJUSRN
Dow Jones U.S. Retail REITs Index Price Return DJUSRL .DJUSRL
Dow Jones U.S. Specialty REITs Index Price Return DJUSSR .DJUSSR
Other Indices:
Dow Jones U.S. Financial Services Index Price Return DJUSFV .DJUSFV

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 21

Canada Select Style Indices
Dow Jones Canada Select Style Indices Return Type Bloomberg Reuters
Dow Jones Canada Select Growth Index Price Return DJCASG .DJCASG
Total Return DJCASGT .DJCASGT
Dow Jones Canada Select Value Index Price Return DJCASV .DJCASV
Total Return DJCASVT .DJCASVT

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 22

Appendix III – Dow Jones U.S. and Canada
Select Style Indices
Dow Jones U.S. Style Indices

The Dow Jones U.S. Style Indices categorize stocks by investment style. A comprehensive, six-factor
model is used to determine whether a stock is "growth" or "value." Stocks determined to be style-neutral
are excluded from the indices.
• U.S. Growth Index • U.S. Value Index
• U.S. Large-Cap Growth Index • U.S. Large-Cap Value Index
• U.S. Mid-Cap Growth Index • U.S. Mid-Cap Value Index
• U.S. Small-Cap Growth Index • U.S. Small-Cap Value Index

Dow Jones Canada Select Style Indices

The Dow Jones Canada Select Style Indices are established benchmarks that have been refined for local
use. The indices present an accurate, balanced and comprehensive portrait of equity style segments,
allowing investors to separately track and evaluate growth and value stocks trading on the Toronto Stock
Exchange. The indices are constructed using a methodology that intends to correctly identify large-cap
and mid-cap growth and value stocks while excluding stocks that do not clearly or consistently exhibit the
traits of either category.

Style Evaluation Criteria and Index Classification

A stock’s style classification is determined by the company’s performance in terms of six measures—two
projected, two current and two historical:
• Projected Price-to-Earnings Ratio (P/E) • Trailing Dividend Yield
• Projected Earnings Growth • Trailing Revenue Growth
• Price-to-Book Ratio (P/B) • Trailing Earnings Growth

The style indices are constructed at the broad-market level and within each size segment according to the
following steps:
1. Stocks are ranked by each of the six measures.
2. Stocks ranking beyond the 5th and 95th percentile for each measure are assigned the same
values as the stocks at the 5th and 95th percentile. For each stock, the values of the six factors are
z-scored for normalization.
3. Cluster analysis, a multivariate statistical procedure, is conducted based on the six factors to
generate five clusters: strong growth, weak growth, strong value, weak value and neutral.
4. If a stock is classified as neutral but has a market capitalization that exceeds or equals 0.5% (2%
for the Dow Jones Canada Select Style Indices) of its size segment’s total capitalization, it is
reclassified as weak growth or weak value based on the nearest cluster mean.
5. The strong growth and weak growth clusters are combined to create the growth index and the
strong value and weak value clusters are combined to create the value index. Neutral stocks are
excluded from the growth and value indices.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 23

 6. For each company, the smallest Euclidean distance out of the 5 seeds represents the seed to
which that company is closest. If this seed is strong Growth or strong Value, then that company
receives that style assignment.
7. If it is weak Growth or weak Value, then the previous style cluster from the last annual review is
referenced. If it is found that it received the same weak style type, then it will receive that style
type. Similarly, companies will generally require having the Neutral cluster for two consecutive
reviews before the company's style classification is changed from Growth or Value to Neutral.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 24

Appendix IV – Real Estate Indices
Index Relationship Hierarchy

Dow Jones U.S. Real Estate Indices

Dow Jones Global

Index (DJGI)

Dow Jones U.S.

Index

Dow Jones U.S.

Real Estate Index
(Supersector 8600)*

Dow Jones U.S. Real Dow Jones U.S. Real

Estate Investment & Estate Investment
Services Index (Sector Trusts Index (Sector
8630)* 8670)*

• Dow Jones U.S. Real Estate • Dow Jones U.S. Industrial & Office
Holding & Development REITs Index (Subsector 8671)*
Index (Subsector 8633)*
• Dow Jones U.S. Retail REITs Index
• Dow Jones U.S. Real Estate (Subsector 8672)*
Services Index (Subsector
• Dow Jones U.S. Residential REITs
8637)*
Index (Subsector 8673)*
• Dow Jones U.S. Diversified REITs
Index (Subsector 8674)*
• Dow Jones U.S. Specialty REITs
Index (Subsector 8675)*
• Dow Jones U.S. Mortgage REITs
Index (Subsector 8676)*
• Dow Jones U.S. Hotel & Lodging
REITs Index (Subsector 8677)*

* Sectors are defined based on a proprietary classification system, which includes 10 broad Industries, 20
Supersectors, 41 Sectors, and at the most granular level, 114 Subsectors. More information on the proprietary
classification system, including the complete sector definitions, can be found at www.spdji.com.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 25

Appendix V – Methodology Changes
Methodology changes since January 1, 2015 are as follows:

Effective Date Methodology

Change (After Close) Previous Updated
Eligibility of 09/18/2020 China A-Shares that trade through the China A-Shares that trade through the
ChiNext Stocks Northbound Trading Segment of the Shanghai- Northbound Trading Segment of the Shanghai-
Hong Kong or the Shenzhen-Hong Kong Stock Hong Kong or the Shenzhen-Hong Kong Stock
Connect Program (excluding ChiNext stocks) Connect Program are eligible using a specified
are eligible using a specified FMC percentage FMC percentage of 25% in consideration of the
of 25% in consideration of the foreign foreign investment limits for Chinese
investment limits for Chinese companies. companies.
Public Shares 09/18/2020 -- For China (A-Shares) and India, S&P Dow
Available to Jones Indices monitors the practical
Foreign Investors: available limit for companies on an ongoing
China A-Shares basis. At each rebalancing, existing
and India constituents whose remaining practical
available limits have dropped below 4%
(China A-Shares) and 3% (India), are
removed. A stock can be added only if the
practical available limit is above these levels
at the time of addition.

Additionally, if the practical available limit for

an existing constituent from India is
breached (falls to zero), or an existing
constituent China A-Share falls below 2%,
then it will be removed from the index with
two to five business days’ notice.
Taiwan “Altered 08/11/2020 -- Current Taiwanese index constituents with
Trading Method” an “Altered Trading Method” designation are
stocks removed with two to five business days’
notice. Once a stock’s “Altered Trading
Method” designation is lifted, it will become
eligible again for inclusion.
Inclusion of Kuwait 09/20/2019 -- Kuwait is included with an Emerging Market
status.
Eligibility of China 09/20/2019 China A-Shares are not eligible. Only overseas China A-Shares that trade through the
A-Shares share listings of mainland Chinese companies Northbound Trading Segment of the Shanghai-
such as H shares, red chips, China DRs, and Hong Kong or the Shenzhen-Hong Kong Stock
U.S.-listed Chinese stocks are eligible. Connect Program (excluding ChiNext stocks)
are eligible using a specified FMC percentage of
25% in consideration of the foreign investment
limits for Chinese companies.
Reference date for 09/20/2019 Quarterly Updates. Changes to shares and Quarterly Updates. Changes to shares and
Quarterly Update IWFs are implemented at the open of trading on IWFs are implemented at the open of trading on
Size Classifications the Monday following the third Friday of March, the Monday following the third Friday of March,
June, and December. Size classification is June, and December. Size classification is
reviewed as part of the quarterly update, with reviewed as part of the quarterly update, with
the reference date for size classification being the reference date for size classification being
the last trading date of the month prior to the five weeks prior to the rebalancing effective
rebalancing. date.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 26

 Effective Date Methodology
Change (After Close) Previous Updated
IPO Fast Track 07/31/2019 -- Certain large IPOs may be eligible for fast track
Eligibility entry, subject to the following conditions:
• Only newly public IPOs and direct
placement listings will be considered
eligible for fast track entry. Formerly
bankrupt companies that switch from Over-
the-Counter Exchange (“OTC”) or a non-
covered exchange to a S&P Dow Jones
Indices covered exchange are ineligible.
• Fast track IPO additions must meet a
minimum FMC (“FMC”) threshold of US$ 2
billion, calculated using the shares offered
(excluding over-allotment options) and the
closing price on the first day of trading on
an eligible exchange. The threshold level is
reviewed from time to time and updated as
needed to assure consistency with market
conditions.
• In addition, the IPO will need to meet all
other applicable index eligibility rules
except for the liquidity requirement. If all
necessary public information is available,
S&P Dow Jones Indices verifies that the
fast track conditions have been met. Once
S&P Dow Jones Indices announces that
the IPO is eligible for fast track addition, it
is added to the index with five business
days lead time. At the discretion of the
Index Committee, fast track IPO additions
eligible to be added during a quarterly
rebalancing freeze period may instead be
added on the rebalancing effective date.
Public Shares 06/21/2019 -- If an individual stock’s foreign investment limit is
Available to very stringent and the stock is in high demand
Foreign Investors among global investors, then frequently the
amount available to foreign investors is quickly
reached.

For the Philippines, UAE, Qatar and Saudi

Arabia, S&P Dow Jones Indices reviews not
only the theoretical foreign investment limits
applicable to companies (as calculated through
S&P Dow Jones Indices’ Investable Weight
Factor (IWF)), but also the practical available
limit (as defined by the known shares actually
available to foreign investors). S&P Dow Jones
Indices also reviews the practical available limit
for companies in certain industries with foreign
investment limits in South Korea and Taiwan.

If the practical available limit for an existing

constituent falls below 5% then it will be
removed from the index at the next quarterly
rebalancing. A stock can be added only if the
practical available limit is 10% or more. All
stocks are reviewed for this at each
rebalancing.
Inclusion of Saudi 03/17/2019 -- Saudi Arabia was initially a stand-alone market.
Arabia In March 2019, it was promoted to emerging
market status. Eligible stocks are included using
a specified FMC percentage of 50% in March
2019 and 100% beginning in September 2019.

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 27

 Effective Date Methodology
Change (After Close) Previous Updated
Liquidity 07/31/2018 Stocks must have fewer than 10 non-trading Each stock must meet two separate liquidity
Requirement days over the previous quarter in order to be criteria to be considered eligible for inclusion:
eligible for inclusion at the annual reconstitution.
• 12-Month Median Value Traded Ratio
(MVTR). Stocks must have a MVTR of at
IPOs must have fewer than 10 non-trading days
least 10% for Emerging Markets or 20% for
since the initial listing date in order to be eligible
Developed Markets.
for inclusion at each quarterly rebalancing.
Current constituents remain eligible if they
have a MVTR of at least 7% for Emerging
Markets or 14% for Developed Markets.
• 6-Month Median Daily Value Traded
(MDVT). Stocks must have a MDVT over
the six months prior to the rebalancing
reference date of at least US$ 100,000 for
Emerging Markets or US$ 250,000 for
Developed Markets.
Current constituents remain eligible if they
have a MDVT of at least US$ 70,000 for
Emerging Markets or US$ 175,000 for
Developed Markets.
Trading History 06/15/2018 -- IPOs must have a trading history of at least
Requirement for three months as of the rebalancing reference
Initial Public date.
Offerings (IPOs)
Index eligibility for 09/18/2017 Stocks are evaluated for inclusion eligibility at Stocks that change to or from an eligible
the Dow Jones each quarterly rebalance. subsector are evaluated for inclusion at the time
U.S. Financial of the change.
Services Index
Inclusion of 09/18/2017 -- Pakistan is included in the Dow Jones Global
Pakistan Indices family Country Indices.
Treatment of Spin- 09/30/2015 Spin-offs of index constituents are added to the The spun-off company is added to all the
offs index at the time of the spin-off, providing they indices of which the parent is a constituent, at a
meet index eligibility requirements. zero price at the market close of the day before
the ex-date (with no divisor adjustment). If the
spun-off company is determined not to be
eligible to remain in the index, it will be removed
after at least one day of regular way trading
(with a divisor adjustment).

S&P Dow Jones Indices: Dow Jones Global Indices Methodology 28

Disclaimer
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