Summary of the Asia 30 Index Methodology
ProFund VP Asia 30 (the “Fund”) seeks investment results, before fees and expenses, that correspond to the performance of the ProFunds Asia 30 Index (the “Index”).
The ProFunds Asia 30 Index is composed of 30 companies domiciled in eligible countries of the Asia/Pacific-ex Japan region, whose securities are traded on U.S. exchanges or on the NASDAQ. The component stocks of the ProFunds Asia 30 Index are determined based on liquidity, and relative weights are determined based on a modified market capitalization approach.
Eligible countries include Australia, New Zealand, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, India, and China.
Procedures to determine the component stocks and relative weights are as follows:
Compile the universe of the Depositary Receipts, New York Shares or Ordinary Shares traded on a U.S. exchange for the companies located in the eligible countries 1. When selecting the Depositary Receipts, only consider “Sponsored Level II or Level III” Depositary Receipts, as these issues are required to register with the SEC and adhere to applicable requirements for U.S. GAAP.
Filter the companies from STEP 1 above according to their liquidity as measured by average dollar-traded volume over the previous six months. The thirty most-liquid names will comprise the index.
Determine the modified weight of each company in the Index as follows:
- Calculate the original weight of each company based on the parent company’s market capitalization.
- Allocate 50% of the total market capitalization equally among 30 names. By doing this, each company should have 1.667% of the weight, totaling 50%.
- Allocate remaining 50% of the total market capitalization by multiplying the original weight by 50% remainder. The result should equal to half of the original weight.
- Combine 1.667% and half of the original weight for each company to come up with “modified market capitalization.”
The ProFunds Asia 30 Index will be reconstituted at least once per year. In addition, the weighting of the index will be reviewed continuously to prevent any single security from representing more than 24.5% of the index, to prevent the collective weight of those index securities whose individual weights are greater than 5% from exceeding 49%, to prevent the collective weights of securities in the same industry subgroup from exceeding 24.5%, and to prevent companies domiciled in Australia and New Zealand from comprising more than 20% of the Index in the aggregate. If any of the above thresholds are threatened, a rebalance may be achieved by proportionally scaling down the weights of all securities contributing to the violation toward 3.3%. The aggregate weight reduction will be proportionally redistributed among the remaining stocks. In addition to the annual reconstitution, ProFunds Advisors reserves the right to replace any component stock at any time if warranted.
1As sourced by Bloomberg, L.P.
Index Holdings as of 12/31/2020
|Alibaba Group Holding Ltd||5.94%|
|BHP Group PLC||5.55%|
|BHP Group Ltd||5.55%|
|Daqo New Energy Corp||2.95%|
|New Oriental Education & Techn||1.83%|
|Futu Holdings Ltd||3.34%|
|GDS Holdings Ltd||3.18%|
|GSX Techedu Inc||1.71%|
|HDFC Bank Ltd||5.27%|
|Huazhu Group Ltd||1.72%|
|ICICI Bank Ltd||3.77%|
|JinkoSolar Holding Co Ltd||2.70%|
|Kingsoft Cloud Holdings Ltd||2.99%|
|TAL Education Group||1.74%|
|Trip.com Group Ltd||1.75%|
|Tencent Music Entertainment Gr||2.21%|
|Taiwan Semiconductor Manufactu||5.70%|
|ZTO Express Cayman Inc||5.26%|