ISE Cyber Security® UCITS Index
The Index aims to track the performance of a basket of stocks of companies that are actively engaged in providing cyber security technology and services.
The Index is comprised of companies which are publically traded on various stock exchanges around the world that generate a material proportion of their revenues from the cyber security industry. The industry is deemed to be comprised of companies in the following two subsectors: (1) Infrastructure Providers that develop hardware and software for safeguarding internal and external access to files, websites and networks; and (2) Service Providers that provide consulting and secure cyber-based services.
A company is only eligible for inclusion in the Index if it is of a sufficient size (determined by reference to the total market value of its shares) and it is sufficiently “liquid” (a measure of how actively its shares are traded on a daily basis).
Within the Index, the weights allocated to the Infrastructure Provider and Service Provider subsectors are determined by reference to the relative size of each sector (i.e. the total market value of the shares of all companies within each subsector). Initially, the companies are equally weighted within each subsector. However, an adjustment to the weights is made if any company falls short of a liquidity test that is applied to each company individually.