Morningstar® Indexes

Morningstar® Gender Diversity Indexes

SMThe United Nations Sustainable Development Goals
state, “Gender equality is not only a fundamental humanright, but also a necessary foundation for a peaceful,prosperous, and sustainable world.” Societies that tap into
the full potential of their populations are more competitive,
and in the corporate sphere, the same principles hold.
Research has shown that companies committed to robust
gender diversity policy and practice can achieve superior
financial results.

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Built with the data and scoring methodology of Equileap,1
The Morningstar Gender Diversity Indexes are designed toemphasize the stocks of companies that have strong
gender diversity policies embedded in their corporate culture
and that ensure equal opportunities to employees,
irrespective of their gender.
Measuring gender diversity
Equileap assigns companies a Gender Equality Score
based on 19 criteria across four broad categories, which areweighted differently.

Index eligibility
The Morningstar Gender Diversity Indexes derive theirconstituents from the corresponding country/regionlarge-mid index from the Morningstar Global Markets Indexes.
All companies from the parent index that are not partof Equileap’s Alarm Bell List are eligible for index inclusion.
Companies are ineligible for index inclusion for 12 months
after initially appearing on the Alarm Bell List.
Portfolio construction
Within each region, companies are ranked in descendingorder by their Equileap Gender Equality Score anddivided into five equally sized groups, with regional weights
being neutral with respect to the parent index. The top group(Group 1) includes companies with the highest scores,
and the bottom group (Group 5) includes companies withthe lowest scores. The tilt factors listed below are then appliedby multiplying the weight of each company in the parent index
by the tilt factor to determine its weight in the Morningstar
Gender Diversity Index.
Group• Category A: Gender Balance in Leadership and Workforce• Category B: Equal Compensation and Work-Life Balance• Category C: Policies Promoting Gender Equality• Category D: Commitment, Transparency, and Accountability
Examples of the 19 criteria driving category scoring include
the gender balance of senior management, thegender pay gap, and policies around parental leave andsexual harassment. Equileap also examines a company’s legal
record, placing companies embroiled in legal cases
involving gender-based violence and discrimination on theAlarm Bell List.

Tilt factor %

11.50

21.25

31.00

40.75

50.50

In cases where companies have an equal Gender Equality
Score, additional data points such as board and executive
diversity are used to determine which company will
receive the higher tilt factor. Individual constituent weights
are capped at 5% of the overall index weight.
Index maintenance
The indexes are reconstituted annually in December
and rebalanced quarterly in March, June, September,and December.

11Visit https://equileap.com to learn more about Equileap©2022 Morningstar, Inc. All rights reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. Marks used in conjunction
with Morningstar products or services are the property of Morningstar or its subsidiaries.

Morningstar® Gender Diversity IndexesSM

Construction process
Starting universe

Security selection• Morningstar Global
Markets Indexes• Includes stocks representing
the top 97% of the investable
equity market by market cap• Country/region large/midindexes• Companies that are partof Equileap’s Alarm Bell List
are ineligible

Portfolio construction• Companies are ranked indescending order by
their Equileap Gender Diversity
Score and divided into fiveequally sized group• Tilt factors are applied basedon group assignment• Individual security weights
capped at 5%

Morningstar Gender
Diversity Indexes

About Morningstar Indexes
Morningstar Indexes was built to keep up with the evolving needs of investors—and to be a leading-edge advocate for them. Our rich heritage as atransparent, investor-focused leader in data and research uniquely equips us to support individuals, institutions, wealth managers and advisors
in navigating investment opportunities across major asset classes, styles and strategies. From traditional benchmarks and unique IP-driven indexes, to index
design, calculation and distribution services, our solutions span an investment landscape as diverse as investors themselves.

Please visit indexes.morningstar.com for more information.

2©2022 Morningstar, Inc. All rights reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. Marks used in conjunction
with Morningstar products or services are the property of Morningstar or its subsidiaries.