Transparency Index Fact Sheet

T100 - Transparency Index™

Transparency Index

Investment Performance + Impact

Investment Thesis: Transparency Invest believes transparent companies – as measured by the six key performance Indicators of transparency – have less friction, superior cultures, greater innovation and creates impact that results in higher level growth.

Growth Potential: The Transparency Index tracks the top 100 transparent companies in the world. Transparency Invest believes that transparency is a catalyst for impact and growth that is set to transform industries.

Index Classification: Thematic Impact Investing

About the Index

Starting with a universe of 55 thousand global equity securities, the Transparency Index consists of 100 most transparent companies in the world derived by applying the Six Key Performance Indicators of Transparency. The index is composed of equity securities and ADRs listed on US stock exchanges ( NYSE, NASDAQ and AMEX).
TOP 10 HOLDINGS

As of September 30, 2021

COMPANY

WEIGHT

1
DIGITALOCEAN HOLDINGS INC
1.67%
2
SALESFORCE.COM INC
1.60%
3
ATLASSIAN CORPORATION PLC
1.58%
4
DATADOG INC
1.44%
5
CHIPOTLE MEXICAN GRILL INC
1.32%
6
UNITY SOFTWARE INC
1.31%
7
DYNATRACE INC
1.30%
8
TESLA INC
1.30%
9
SNOWFLAKE INC
1.30%
10
NETFLIX INC
1.24%
Holdings are subject to change. Index holdings should not be considered as investment advice or a recommendation to buy, sell or hold any particular security. The securities identified do not represent all of the securities purchased, sold or recommended for client accounts. It should not be assumed that an investment in the securities identified was or will be profitable. Index weights will be reweighted at the end of each quarter on the rebalancing date back to a 1% weighting for each index constituent.
INDEX DETAILS

As of September 30, 2021

INDEX NAME
Transparency Index
ISIN
DE000SL0DL14
INDEX LISTINGS
Bloomberg and Reuters
BLOOMBERG TICKER
TRANSPCY Index
RIC
.TRANSPCY
INCEPTION DATE
06.16.2021
INDEX MANAGEMENT
Passive
AVERAGE MARKET CAP
126.70 Billion
MEDIAN MARKET CAP
$28.90 Billion

Transparency Index Market Performance

Transparency Index™ vs S&P 500 Performance

The graph shows cumulative returns for the period from October 1, 2016 to September 30, 2021.
Starting value $10,000 hypothetical investment, assuming no withdrawal and no dividends.
Using an archive back test, the number of transparent companies varied each year beginning in 2016. As such, the monthly returns were calculated for the number of transparent companies available in each year until June 30, 2021. Beginning on July 1, 2021, the monthly returns from the live index were included as part of annual return calculation.

INDEX PERFORMANCE

As of September 30, 2021

YTD
1YR
3YR
5YR
Transparency Index™
+4.57%
+32.87%
+31.58%
+34.68%
S&P 500
+15.92%
+30.01%
+15.99%
+16.90%
The annual return performance presented is the back-tested performance. Annual Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information. Data source for S&P 500 is S&P Global Inc.
MARKET CAPITALIZATION

As of September 30, 2021

Mega ($100B+)
23.2%
Large ($10 - $100B)
45.5%
Medium ($2 - $10B)
25.3%
Small ($300M - $2B)
6.1%
SECTOR BREAKDOWN

As of September 30, 2021

Information Technology
41.4%
Consumer Discretionary
22.2%
Communication Services 
7.1%
Healthcare
8.1%
Industrials
13.1%
Consumer Staples
4.0%
Financials
2.0%
Materials
2.0%

Sector Breakdown is based on Global Industry Classification Standard (GICS).

GEOGRAPHIC BREAKDOWN

As of September 30, 2021

North America
84.8%
Asia Pacific
2.0%
Western Europe 
8.1%
Africa/Middle East
1.0%
Emerging Markets
4.0%
SUMMARY OF INDEX METHODOLOGY
INDEX CLASSIFICATION
Thematic Impact Investing
SELECTION UNIVERSE
Global Equities
Minimum Market Cap
$1Billion
Listed Exchanges
NYSE, NASDAQ, AMEX (ADRS)
Revenue
No pre-revenue companies
Security Selection
Rules Based
6 KPIs1
Transparency Standards®, Terms, Total Accountability, Transparent Cost™, Truth, Trust
Index Management
Passive
Number of Constituents
100
Rebalancing
Quarterly: March, June, September and December: Last business day of each quarter
Portfolio Weighting
Equally Weighted Portfolio, 1%
Excluded Industries
Alcohol, Banking, Chemical, Confectionary, Fossil Fuel Transportation, Gambling, Metals & Minerals, Oil & Natural Gas and Tobacco
Transparency Index vs S&P 500

As of September 30, 2021

Company Overlap1
6.4%
5 Year CAGR2
35%
Average Market Cap3
$127B
$78B
International Exposure
20%
4.2%
Tracking Error4
9.01%
Correlation5
.83
Revenue Growth6
+12.04%
+9.41%
Excluded Companies7
(Companies from 9 Excluded Industries)
0
157

The Standard & Poor’s (S&P) 500 Index is an index consisting of the 500 largest US publicly traded companies. The S&P 500 Index is weighted by market cap.

  1. Company Overlap shows percentage of companies that are in the Transparency Index that are also included in S&P 500.
  2. 5 Year CAGR is for the period from Oct 1, 2016 – Sep 30, 2021. 5 Year CAGR for Transparency Index is calculated using an archive back test. Using an archive back test, the number of transparent companies varied each year beginning in 2016. As such, the monthly returns were calculated for the number of transparent companies available in each year until June 30, 2021. Beginning on July 1, 2021, the monthly returns from the live index were included as part of annual return calculation.
  3. Average Market Cap data as of Sep 30, 2021.
  4. Tracking Error shows 5-year average Tracking Error of Transparency Index against the benchmark S&P 500 for the period from Jan 1, 2016 to Dec 31, 2020.
  5. Correlation shows 5-year average Correlation of Transparency Index with the benchmark S&P 500 for the period from Jan 1, 2016 to Dec 31, 2020.
  6. Revenue Growth shows 5-year average revenue growth of Transparency Index vs. S&P 500 for the period from Jan 1, 2016 – Dec 31, 2020.
  7. Excluded Companies are defined as companies from non-transparent industries and industries that are harmful.

S&P 500

Transparency Index

Transparency Index vs. S&P 500 Breakdown
  • The Standard & Poor’s (S&P) 500 Index is an index consisting of the 500 largest US publicly traded companies. The S&P 500 Index is weighted by market cap.
  • The source for The Standard & Poor’s (S&P) 500 Index sector breakdown is S&P Global Inc.
  • Sector Breakdown is based on Global Industry Classification Standard (GICS). Sector Breakdown is as of Sep 30, 2021.
  • As of Sep 30, 2021, excluded sectors from Transparency Index are energy, real estate and utilities.
  • Average Market Cap Data as of September 30, 2021.
  • Index weights will be reweighted at the end of each quarter on the rebalancing date back to a 1% weighting for each index constituent.
  • Holdings are subject to change. Index holdings should not be considered as investment advice or a recommendation to buy, sell or hold any particular security.

Index Calculation

Transparency Invest has contracted with Solactive AG to maintain the Index rules and methodology, calculate the Index and disseminate information about the Index including the performance shown herein. Solactive does not manage actual assets. The Index is unmanaged, which means that the companies included in the Index are selected automatically according to a proprietary algorithm of Transparency Invest that serves as the basis of the Index methodology. The Index is equal-weighted, which means that the 100 companies included in the Index each represents approximately 1% of the Index – with variations due to market performance. Solactive rebalances the Index back to a 1% weight for each index constituent at the end of every quarter/3 months using the Index methodology explained herein. The Index and the performance shown herein to do not reflect the payment of any sales charges or fees that an investor may pay to purchase the securities underlying the Index or the securities of any investment funds that seek to track the performance of the Index. The imposition of such fees and charges would cause actual and back-tested performance of the securities/fund to be lower than the Index performance shown. Additional details regarding the calculation of the Index are available by contacting Solactive AG.

Company

Transparency Invest is a technology-based organization with a transformative purpose to positively impact one billion lives. We are a leader in transparency research, financial indexes and educational services, with a mission to accelerate the world’s adoption of transparency. We relentlessly pursue solutions to solve the world’s biggest problems through transparency. Transparency Changes Everything®.

Back-Tested Performance

The Transparency Index (“the Index”) commenced on June 16th, 2021 following the market close. All information presented prior to this date is backtested. Back-tested performance is hypothetical performance, not actual performance. Back-tested performance is prepared by retrospectively applying the Index methodology to historical information with the benefit of hindsight. Back-tested performance, therefore, does not reflect the results of actual trading. Back-tested, as well as actual performance, are not indicative of future results. The back-tested performance uses the same methodology that was in effect when the Index officially launched on June 16th, 2021. The back-tested performance shown in this presentation is unaudited and does not reflect the investment of dividends or other earnings. The Index does not reflect the reinvestment of dividends.

Using an archive back test, the number of transparent companies varied each year beginning in 2016. As such, the monthly returns were calculated for the number of transparent companies available in each year until June 30, 2021. Beginning on July 1, 2021, the monthly returns from the live index were included as part of annual return calculation. As a result of the archive backtest, the number of companies available at the beginning of each year was: 43 companies – 2016, 46 companies –2017, 51 companies – 2018, 64 companies – 2019 , 83 companies – 2020, 100 companies – 2021.

The index methodology does not overweight or underweight any particular industry, sector or geography. All KPIs are equally weighted. Company selection into the index is based on the level of organizational transparency as quantified by the 6 KPIs. Examples of reasons why companies did not make the index include: 1. KPI score not greater than 60% 2. Market cap less than $1 billion on a 30-day moving average basis 3. No company website 4. In an excluded industry 4. Not listed on a U.S stock exchange and 5. Not yet IPOed or IPOed less than 40 days.

Transparency Index™ Powered Using Refinitiv Data

Filtering out industries that do not align with a positive impact on investment performance. well-being of people. the environment.

Transparency® Icon

TRANSPARENCY CHANGES EVERYTHING®