Index Construction Summary
The FTSE Renaissance IPO Composite Index is a comprehensive benchmark index designed to track the performance of the IPO market. The Index includes all institutionally-investable IPOs, capturing over 95% of the U.S. IPO market. The total Index population is variable over time with constituents exiting after two years when they are "seasoned." The Index is calculated using a float-adjusted market capitalization weighting technique to include only those shares that are available for public trading. Developed by Renaissance Capital, The IPO Expert®, and FTSE Group, a world leader in the creation and management of indices, the FTSE Renaissance IPO Composite Index is designed as a benchmark Index that captures the "essence" of IPO activity and performance.
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| Weighting | Float-adjusted market capitalization |
| Number of Constituents | Variable based upon IPO activity |
| Constituent Additions | Qualified IPOs are added after the close of their first trading day. |
| Constituent Deletions | Members are removed shortly after the second anniversary of their IPO date, resulting in an approximate holding period of 500 trading days. |
| Minimum Float Capitalization | IPOs are required to meet a basis points threshold of 0.03% for Index inclusion. In addition, IPOs must have a minimum full market capitalization of $50 million at the end of their first trading day. |
| Rebalance Frequency | Index constituents are reviewed for eligibility based upon size and liquidity on a quarterly basis. The number of shares and float weights are also updated quarterly. |
| Significant Events | Shares are adjusted weekly for corporate actions that impact a constituent's float shares by more than 10%. |