The Indxis Select Canadian Dividend IndexTM is comprised of companies incorporated in Canada, trade on a major Canadian exchange, and have the same or increasing annual regular dividend payments for the last five or more consecutive years.
Select constituents that:
Have an average daily cash volume of CA$500,000 in the November and December prior to reconstitution.
If a company has more than one issue, the most liquid will be selected.
On December 31 of each year, determine the indicated annual dividend (IAD) yield for each constituent .
Rank the constituents in descending order by IAD yield.
Select the top 60 constituents by IAD yield.
Rank the constituents in descending order by market capitalization as of December 31 of the prior year.
Select the top 45 constituents by market capitalization.
Weight each constituent according to their market capitalization as of December 31.
No constituent will have a weight in excess of 10% at reconstitution or rebalance.
If the weight of a constituent(s) exceeds 10%, the excess weight will be proportionately allocated to the remaining constituents.
At reconstitution, a constituent must actively pay a dividend.
The Index is reconstituted annually and will begin trading on the first business day in February based upon their weight as of the last trading day in the prior December.
The Index is rebalanced quarterly on the last trading date in April, July and October. The rebalanced weights will be based on the constituents' market capitalization as of the last trading date in March, June, and September, respectively.
The Index is rebalanced for corporate actions. If a constituent is removed from the Index, there will be no replacement.