Index
The product of market capitalization AND democracy scores.
Index Details
As of 03/31/2021
| Ticker | DMCYNTR |
|---|---|
| Index Calculator | Solactive AG |
| Weighting Method | Single Factor |
| Rebalance | Quarterly |
| Weighted Avg. | $85 Billion |
| Median Market Cap | $8 Billion |
| Number of Holdings | 2,875 |
Index Description and Objectives
Our starting universe is the Solactive GBS Global Markets ex US Index, which is a large and mid-cap international equity market cap weighted index in both developed and emerging markets. While this index is very similar to MSCI and FTSE All Country World ex-United States Indexes, Solactive is a respected world leader in low-cost fixed fee stock indices.
The index is then re-weighted by the security’s country of risk leveraging the Economist’s Democracy Index.
Our proprietary methodology results in the Democracy Investments International Index, which has higher weightings in democratic countries and lower weightings in authoritarian countries.
% Country Weight in Index versus Starting Universe
This data represents the change in percent of the country weights in the Democracy Investments International Index compared to the Solactive GBS Global Markets ex US Index as baseline.
| Norway | 31% |
| New Zealand | 25% |
| Sweden | 23% |
| Denmark | 21% |
| Finland | 21% |
| Canada | 18% |
| Netherlands | 17% |
| Switzerland | 17% |
| Ireland | 17% |
| Taiwan | 17% |
| Australia | 15% |
| Germany | 15% |
| U.K. | 9% |
| Austria | 9% |
| Chile | 9% |
| Japan | 7% |
| France | 6% |
| Portugal | 6% |
| South Korea | 5% |
| Israel | 3% |
| Belgium | 3% |
| Greece | 2% |
| Italy | 2% |
| Czech Republic | 1% |
| Malaysia | -6% |
| South Africa | -7% |
| Colombia | -8% |
| Poland | -8% |
| India | -8% |
| Brazil | -9% |
| Indonesia | -11% |
| Philippines | -12% |
| Thailand | -14% |
| Hungary | -17% |
| Singapore | -19% |
| Mexico | -31% |
| Hong Kong | -31% |
| Turkey | -42% |
| Kuwait | -49% |
| Qatar | -53% |
| Egypt | -62% |
| United Arab Emirates | -62% |
| Saudi Arabia | -72% |
| China | -73% |
Source: Solactive GBS Global Markets ex US Index reweighted with The Economist’s Democracy Index (2022) to create new country weightings in the Democracy Investments International Index; Russia is no longer in the Index but was down weighted -55% prior to divestment
Top Holdings Comparison
Before and after Democracy Weighting
Before Democracy Weighting
Solactive GBS Global Markets ex US Index
As of 03/31/2022
| 1 | Taiwan Semiconductor Manufacturing | Taiwan | 1.56% |
| 2 | Nestle | Switzerland | 1.46% |
| 3 | Novo Nordisk | Denmark | 1.10% |
| 4 | Tencent | China | 1.06% |
| 5 | LVMH | France | 1.05% |
| 6 | ASML Holding | Netherlands | 1.04% |
| 7 | Samsung Electronics | South Korea | 0.97% |
| 8 | Astrazenca | U.K. | 0.93% |
| 9 | Roche Holding | Switzerland | 0.92% |
| 10 | Novartis | Switzerland | 0.85% |
| 11 | Shell | U.K. | 0.81% |
| 12 | Alibaba | China | 0.69% |
| 13 | Toyota Motor | Japan | 0.65% |
| 14 | HSBC | U.K. | 0.61% |
| 15 | BHP Group | Australia | 0.59% |
After Democracy Weighting
Democracy Investments International Index
As of 03/31/2022
| 1 | Taiwan Semiconductor | Taiwan | 1.86% |
| 2 | Nestle | Switzerland | 1.70% |
| 3 | Novo Nordisk | Denmark | 1.33% |
| 4 | ASML Holding | Netherlands | 1.21% |
| 5 | LVMH | France | 1.09% |
| 6 | Roche Holding | Switzerland | 1.08% |
| 7 | Samsung Electronics | South Korea | 1.02% |
| 8 | Astrazeneca | U.K. | 0.99% |
| 9 | Novartis | Switzerland | 0.99% |
| 10 | Shell | U.K. | 0.93% |
| 11 | BHP Group | Australia | 0.72% |
| 12 | Toyota Motor | Japan | 0.70% |
| 13 | SAP | Germany | 0.66% |
| 14 | Royal Bank of Canada | Canada | 0.65% |
| 15 | HSBC | U.K. | 0.64% |
Source: Democracy Investments analysis leveraging The Economist’s Democracy Index (2022) to re-weight the Solactive GBS Global Markets ex-US Index; holdings are subject to change.
Top 12 Country Weightings Most Impacted
% Weight in Indexes by Country
As of 03/31/22
Source: Democracy Investments Index Provider analysis (2022)
Weights by Sector
As of 2023-12-09
| Issue | Portfolio | Benchmark | Difference |
|---|---|---|---|
| Financials | 19.46% | 20.00% | -0.54% |
| Industrials | 14.22% | 13.62% | 0.60% |
| Information Technology | 11.55% | 10.76% | 0.79% |
| Consumer Discretionary | 10.74% | 11.68% | -0.94% |
| Health Care | 10.59% | 9.89% | 0.70% |
| Consumer Staples | 9.19% | 8.96% | 0.23% |
| Materials | 8.39% | 8.16% | 0.23% |
| Energy | 5.57% | 5.40% | 0.17% |
| Communication Services | 4.93% | 6.09% | -1.17% |
| Utilities | 3.20% | 3.31% | -0.11% |
| Real Estate | 1.85% | 2.12% | -0.27% |
Source: Democracy Investments Index Provider analysis (2023); Sum of the weightings may not equal 100% due to rounding.
Portfolio Composition
As of 03/31/2021
Market Capitalization
Investment Style
Source: Democracy Investments Index Provider analysis (2022); Sum of the weightings may not equal 100% due to rounding.