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  Index Weighting
 
Constituent weights are revised at the beginning of each trading day according to the base price.
Calculation of Constituents Weights 
  • For indices without weight limitations
    The weight of each constituent reflects its free float adjusted market capitalization relative to the total free float market capitalization of all index constituents.
  • For indices with a weight cap
    The weight of each constituent reflects its factored free float adjusted market capitalization relative to the total factored free float market capitalization of all index constituents.
The parameters affecting the weighting of index constituents are outlined below.
For the TASE indices weight calculation methodology, click here.
Free Float Rate  

Shares included in the Universe are classified into 7 groups (classes) according to their Free Float Rate. For the purpose of determining constituent weights, this Rate is modified such that all constituents in a given class are assigned with a unified Free Float Rate, as outlined in the following table:

Class

Free Float Rate Range

Lower Class Threshold

Index adjusted Free Float Rate

A

20%-25%

less tan 20%

20%

B

25% -30%

less than 25%

25%

C

30% -35%

less than 27.5%

35%

D

35%-45%

less than 32.5%

45%

E

45%- 60%

less than 40%

60%

F

60%-80%

less than 55%

80%

G

80% -100%

less than 75%

100%

IANS, Free Float and Free Float adjusted Capitalization 
IANS (Index-adjusted Number of Shares) – is the nominal value of listed shareholders equity for the purpose of calculating the weight of an index constituent. The IANS is updated quarterly or weekly, if and when a change of 10% or more relative to the existing IANS occurs. In addition, certain corporate actions can trigger an immediate IANS update during interim periods falling between quarterly or weekly updates:
  • The distribution of  stock dividends or splits and reverse splits;
  • Unification of share classes;
  • Rights offerings.
The Index Adjusted Free Float – is the nominal value of listed shareholders equity held by the public. It is calculated by multiplying the IANS by the Index adjusted Free Float Rate (as outlined in the Free Float Rate table above).
The Index Adjusted Free Float Market Capitalization– is the Index Adjusted Free Float multiplied by the share price.
Weight Limitations 

The Weight Cap for each index is set according to the number of constituents in an index. On each (semi-annual) Index Review Date weight caps are set according to following table:

No. of Index Constituents or Index Type

Weight Limitation

20 or more

10% or 15%

10-19

10% or 15% or 20%

0-9

20% or equal weighting or no weight cap

Qualitative Indices (Maala and Tel Div-20)

Equal weighting


Rebalance of Constituents Weights to the Weight Limitation
The constituents weights are rebalanced quarterly according to the above weight limitations.

Weight limitation rebalances may also occur during the interim between quarterly rebalances:

  • On the Weekly IANS Update a given constituent's weight exceeds the weight cap by 50% or more;
  • A newly-listed share is fast-tracked onto the index;

Indices Weight Limitation:

Index

Weight Limitation

TA-25

10%

TA-75

10%

TA-100

10%

Mid-Cap-50

10%

Mid-Cap-TA

10%

TA Composite

10%

TA BlueTech-50

10%

TA-Technology

10%

Biomed

10%

Finance

15%

TA-Banks

No weight cap

TA-Insurance

No weight cap

Real-Estate-15

15%

TA-Oil & Gas

15%

TA-Com

15%

Tel-Div

Equal weighting

Maala

Equal weighting

Schedule for Rebalancing Parameters  

Type of Update

Review Dates

Publication Dates

Effective Dates

Rebalanced Parameter

Quarterly

February 28th

May 31st

August 31st

November 30th

By March 10th

by June 10th

by September 10th

by December 10the

March 15th

June 15th

September 15th

December 15

 -IANS (if 10%+ change)

-Free Float Rate Class

- Weight Factor

Weekly*

Wednesday

Wednesday

Sunday

Only if significant change occurs:

- IANS (if 10%+ change)

-Weight Factor – if constituent exceeds weight cap by at least 50% or if a share is fast-tracked into the index

Extraordinary

cum-corporate action date

cum-corporate action date

ex-corporate action date

- IANS (ex-split, unification of share classes if both are included in the Universe, ex-rights)

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