INDEX METHODOLOGYMSCI Expanded ADR
Indexes

September 2024

© 2024 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

MSCI EXPANDED ADR INDEXES | SEPTEMBER 2024

Contents
1. Introduction ............................................................................................................. 3
2. Index Construction................................................................................................... 4
2.1 Eligible Universe ............................................................................................................ 4
2.2 Applicable Universe ....................................................................................................... 4
2.3 Weighting Scheme ........................................................................................................ 4
3. Maintenance of the Index ......................................................................................... 5
3.1 Quarterly Index Reviews................................................................................................ 5
3.2 Ongoing Event Related Changes .................................................................................. 5
Appendix I - Methodology Set ...................................................................................... 7
Appendix II – Changes to this Document...................................................................... 8© 2024 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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1. Introduction
The MSCI Expanded ADR Indexes1 (the “Indexes”) aim to reflect the performance of large and mid-cap
companies in the MSCI Global Investable Market Indexes (the “Parent Indexes”) which have American
Depositary Receipts (ADR) listings, represented by their corresponding ADRs. The Eligible Universe
comprises Level I, II and III2 ADRs traded on the New York Stock Exchange or the NASDAQ.
The Indexes are constructed by substituting the constituents of the corresponding Parent Indexes
with liquid ADRs from the Eligible Universe described in Section 2.1.

1 The Indexes are governed by a set of methodology and policy documents (“Methodology Set”), including the present index

methodology document. Please refer to Appendix I for more details.
2 For details on ADRs levels classification, please refer to https://www.sec.gov/investor/alerts/adr-bulletin.pdf© 2024 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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2. Index Construction
2.1 Eligible Universe
The Eligible Universe comprises Level I, II and III ADRs listed on the New York Stock Exchange or the
NASDAQ for the companies that are constituents of the Parent Indexes.
Constituents of the Parent Indexes without such ADR listings are not considered for inclusion in the
Index.

2.2 Applicable Universe
From the Eligible Universe, securities with a 1-month Frequency of Trading3 (“FOT”) below 80% are
excluded from the Index.
The remaining securities are sorted in descending order of 12-month Annual Traded Value Ratio3(ATVR), and the cumulative coverage of the free float-adjusted market capitalization is calculated ateach security. Securities ranked below the cumulative 95% of the weights based on free float-adjusted
market capitalization coverage are excluded from the Index.
If more than one ADR exist for a constituent from the Parent Indexes, the most liquid listing, as
measured by its corresponding 12-month ATVR, will be included in the Index.
The Applicable Universe is then obtained by applying the above liquidity screens to the Eligible
Universe.

2.3 Weighting Scheme
The securities in the Applicable Universe are weighted in proportion of their free float-adjusted market
capitalization.

3 For more details on liquidity measures, please refer to Section 2 “Constructing the MSCI Global Investable Markets” of MSCI Global

Investable Market Indexes (GIMI) methodology, available at https://www.msci.com/index/methodology/latest/GIMI© 2024 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI EXPANDED ADR INDEXES | SEPTEMBER 2024

3. Maintenance of the Index
3.1 Quarterly Index Reviews
The Indexes are reviewed on a quarterly basis to coincide with the regular Semi-Annual and Quarterly
Index Reviews of the MSCI Global Investable Market Indexes. The changes are implemented as of theclose of the last business day of February, May, August and November.
The pro forma Index is in general announced nine business days before the effective date.

3.2 Ongoing Event Related Changes
The general treatment of corporate events in the MSCI Expanded ADR Indexes aims to minimize
turnover outside of Index Reviews. The methodology aims to appropriately represent an investor’s
participation in an event based on relevant deal terms and pre-event weighting of the index
constituents that are involved.
The following section briefly describes the treatment of common corporate events within the MSCI
Expanded ADR Indexes.
No new securities will be added (except where noted below) to the Index between Index Reviews. For
cases where additions are noted below, securities will be added to the index only if added to the Parent
Indexes.
Parent Indexes deletions will be reflected simultaneously.

EVENT TYPE

EVENT DETAILSNew additions to the Parent Indexes

A new security added to the Parent Indexes (such as
IPO and other early inclusions), will not be added to
the Index.

Spin-Offs

All securities created as a result of the spin-off,including detached securities, of an existing index
constituent will not be added to the index at the timeof event implementation.

Merger/Acquisition

For Mergers and Acquisitions, the acquirer’s post event
weight will account for the proportionate amount ofshares involved in deal consideration, while cash
proceeds will be invested across the Index.
If an existing Index constituent is acquired by a nonIndex constituent, the existing constituent will bedeleted from the Index and the acquiring nonconstituent will not be added to the Index.

Changes in Security Characteristics

A security will continue to be an Index constituent if
there are changes in characteristics (country, sector,
size segment, etc.) Re-evaluation for continued© 2024 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI EXPANDED ADR INDEXES | SEPTEMBER 2024

inclusion in the Index will occur at the subsequentIndex Review.
Securities under Prolonged Suspension

Index constituents, where the corresponding
constituents in the Parent Indexes are under prolonged
suspension, are deleted from the Indexes
simultaneouslywith their deletionof thecorresponding constituents from the Parent Indexes
using the last traded price of the ADR.
If a constituent is suspended, while the corresponding
security in the Parent Indexes is still trading, it will bemaintained and reviewed at subsequent Index Review.

Further detail and illustration regarding specific treatment of corporate events relevant to this Index
can be found in the MSCI Corporate Events Methodology book and Appendix XII of the MSCI Global
Investable Market Indexes methodology.
The MSCI Corporate Events methodology book and MSCI Global Investable Market Indexes
methodology book are available at: https://www.msci.com/index-methodology.

© 2024 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI EXPANDED ADR INDEXES | SEPTEMBER 2024

Appendix I - Methodology Set
The indexes are governed by a set of methodology and policy documents (“Methodology Set”),
including the present index methodology document as mentioned below:•

Description of methodology set –https://www.msci.com/index/methodology/latest/ReadMe•

MSCI Corporate Events Methodology –https://www.msci.com/index/methodology/latest/CE•

MSCI Fundamental Data Methodology –https://www.msci.com/index/methodology/latest/FundData•

MSCI Index Calculation Methodology –https://www.msci.com/index/methodology/latest/IndexCalc•

MSCI Index Glossary of Terms –https://www.msci.com/index/methodology/latest/IndexGlossary•

MSCI Index Policies – https://www.msci.com/index/methodology/latest/IndexPolicy•

MSCI Global Industry Classification Standard (GICS) Methodology –www.msci.com/index/methodology/latest/GICS•

MSCI Global Investable Market Indexes Methodology –https://www.msci.com/index/methodology/latest/GIMI•

MSCI Global ex Controversial Weapons Indexes Methodology –www.msci.com/index/methodology/latest/XCW•

ESG Factors In Methodology*

The Methodology Set for the Indexes can also be accessed from MSCI’s webpage
https://www.msci.com/index/methodology in the section ‘Search Methodology by Index Name orIndex Code’.

* ‘ESG Factors in Methodology’ contains the list of environmental, social, and governance factors
considered, and how they are applied in the methodology (e.g., selection, weighting or exclusion). It
can be accessed in the Methodology Set as described above.

© 2024 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI EXPANDED ADR INDEXES | SEPTEMBER 2024

Appendix II – Changes to this Document
First version reviewed and published in September 2022.

The following modifications are effective from September 2024:
Section 2.2: Applicable Universe:•

Clarification for cumulative 95% selection, specifying the usage of weights based on free
float-adjusted market capitalization.

© 2024 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.

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MSCI EXPANDED ADR INDEXES | SEPTEMBER 2024

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