The S&P/ASX Emerging Companies Index is the premier benchmark to measure the performance of microcap stocks in the Australian Markets. The index provides investors with a tool to effectively analyze characteristics of the microcap segment of the market. The S&P/ASX Emerging Companies Index is calculated using a base-weighted aggregate methodology, where the level of an index reflects the total market value of all the component stocks relative to a particular base period. At any given time, the index cannot have more than 200 constituents which are selected based on aggregate total market-capitalization and liquidity criteria.

Index constituents exhibit the following characteristics:

• Universe – Constituents must be ordinary and preferred equity stocks that are primary and secondary listings on the ASX.
• Market Capitalization – The market capitalization range for the index is set by ranking total market capitalization for each eligible constituent. Stocks that fit within ranking parameters at the rebalancing rate are included.
• Liquidity – Stocks must meet a minimum six-month daily trading average of A$ 200,000. Stocks are excluded if the six-month daily average trade minimum is less than A$ 75,000 at the rebalancing.

Index Governance and Policy
This index is maintained by the S&P Australian Index Committee, comprised of five members representing both the Australian Stock Exchange and Standard & Poor's. They follow a set of published guidelines and policies that provide the transparent methodologies used to maintain the indices.

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