Month: May 2017

The Index is calculated using a modified market capitalization weighting methodology; with component weights modified to conform to asset diversification rules applied in conjunction with the scheduled quarterly updates to the Index. The resultant weighting is designed to be RIC compliant and ‘fund friendly’. The weight of any component stock at the time of rebalancing may not account for more than 10% of the total value of the Index.

The Index includes companies that are involved with the development, manufacture, operation, and support of U.S. defense, military, homeland security, and space operations that are listed on the New York Stock Exchange or quoted on the NASDAQ National Market.

To be included in the Index, components must meet the following:

• Maintain a minimum $100 million market valuation during the 25 days preceding the initial inclusion date.
• Maintain a minimum $5.00 daily share price during the 25 days preceding the initial inclusion date.
• Have a minimum average daily trading volume over the preceding 25 days prior to the inclusion date of 50,000 shares
• Have a quarterly sales/revenue/turnover of at least $10 million for the prior two announced quarters preceding its inclusion.

The ISBC may at any time and from time to time change the number of issues comprising the Index by adding or deleting one or more components, or replace one or more issues contained in the Index with one or more substitute stocks of its choice, if in the ISBC’s discretion such addition, deletion or substitution is necessary or appropriate to maintain the quality and/or character of the industry groups to which the Index relates.

In the event of a merger…

Changes to the Index composition and/or the component share weights in the Index typically take effect after the close of trading on the next to last business day of each calendar quarter month (“Rebalance Date”). The components and weights will be determined and announced at the close of trading two days prior to the Rebalance Date. This takes place in March, June, September, and December.

In conjunction with the quarterly review, the share weights used in the calculation of the Index are updated based upon current shares outstanding and prices as of the close of trading two business days prior to the Rebalance Date. The share weight of each component in the Index portfolio remains fixed between quarterly reviews except in the event of certain types of corporate actions such as splits, reverse splits, stock dividends, or similar events.