MarketGrader 100 Index


Base Date:

September 20, 2002

No. of Components:

100

Minimum Market Cap:

USD $100 million

Minimum Daily Avg. Liquidity:

USD $2 million

Sector Limit:

25% (25 companies)

Industry Limit:

12% (12 companies)

Geographic Exposure:

United States

Rebalance Frequency:

Semi-annual

Underlying Universe:

Companies domiciled in the North America, excluding Canada, listed in U.S. exchanges


Methodology


Selection
All index constituents are selected on the basis of their fundamental strength as measured by MarketGrader’s overall grade. Built on a scale between 0 and 100, our Overall Grade is based on our 24 fundamental indicators, which are broken down into four analytical categories: Growth, Value, Profitability and Cash Flow. All of our indicators and our overall grades are calculated daily for all companies under coverage.


Equal Weighting
All index constituents are equally weighted every time the index is rebalanced. No weight modifications or adjustments are made to the portfolio between rebalance periods.


Liquidity
All index constituents must have a minimum total market cap of USD $100 million and a minimum 3-month daily traded value of USD $2 million. At least 25% of all index components (25 companies) must have a total market cap of at least USD $10 billion. No more than 25% of all index components may have a total market cap below $1 billion.


Diversification
No more than 25% of the index (25 companies) may belong to the same economic sector while no more than 12% of the index (12 companies) may belong to the same industry. REITs and Utilities are altogether ineligible for selection.


Rebalance Discipline
The index is rebalanced semi-annually, on the third Friday of February and August.

Strategy

The MarketGrader 100 Index seeks to follow the most fundamentally sound companies with the best growth prospects in the United States. Since its constituents are equally weighted the index gives each company an equal opportunity to contribute to the performance of the portfolio regardless of market size, sector or business model. It was designed to offer investors who follow market cap weighted benchmarks an alternative way to capture the growth in the world’s largest economy and deepest financial market.




Licensing Opportunities

156 Almeria Ave, Suite 201
Coral Gables, Florida 33134 USA
Phone (888) 529-1767
Licensing@marketgrader.com




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