Name and Rule Change for BQTUM

Index Name

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BlueStar® Machine Learning and Quantum Computing Index

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BlueStar® Quantum Computing and Machine Learning Index

1.1.1 Pure-Play/Thematic Screening

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The index includes companies whose business activity, products, or services include one of the following in relation to the development or commercialization of quantum computing or machine learning technology, based principally on companies’ most recent annual filing:

• Quantum Computing, including:

– super conducting materials,

– applications or algorithms built for quantum computers, and/or

– equipment and materials used specifically in the manufacturing of quantum computers.

• Machine Learning, including:

– advanced computing hardware (such as GPUs, FPGAs, ASICs, and other embedded artificial intelligence chips),

– semiconductor manufacturing equipment, and/or

– companies that specialize in the perception, collection, visualization, or management of big data.

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The index includes companies whose business activity, products, or services include one of the following in relation to the development or commercialization of quantum computing or machine learning technology:

• Quantum Computing, including:

– Quantum Computing Companies: Companies with at least 50% of their revenues or operating activity from quantum computing technology or services.

– Quantum Computing Hardware Ecosystem Companies: Companies involved in the development of quantum computing hardware including, but not limited to:

* Research, design, and manufacturing of quantum computers and related hardware systems, components, and materials, and/or

* Integration and interaction of quantum computing with traditional computing systems.

– Quantum Computing Software Ecosystem Companies: Companies involved in the development of quantum computing software and related technologies including, but not limited to:

* Application of quantum computing in areas such as scientific research, optimization, and secure communications,

* Development of specialized software and algorithms tailored for quantum computing hardware, and/or

* Creation of quantum-enhanced encryption algorithms.

* Companies providing telecommunications services are not included.

• Machine Learning, including:

– Advanced computing hardware (such as GPUs, FPGAs, ASICs, NPUs, AI-specific memory chips, or other embedded artificial intelligence chips),

– Companies that specialize in the perception, collection, or management of big data, including those that derive at least 50% of revenue from database management, data platforms, big data analytics, data-related API management software, AI-cloud infrastructure platforms, and/or

– AI as a Service, defined as companies with at least 50% of revenue from AI-based search and Large Language Models (LLMs).

1.1.3 Exchange Eligibility

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Securities must be listed on an exchange in one of the following countries to qualify for the index universe: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, United Kingdom, United States.

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Securities must be listed on an exchange in one of the following countries to qualify for the index universe: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, United Kingdom, United States.

1.2.1 Market Capitalization and Liquidity Criteria

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Securities must meet the following size and liquidity requirements to be included in the investable universe. If composite country volume data exists, it will be used to identify the investable universe.

All of the following applies for securities that are currently not included in the index:

• free-float of at least 10%,

• full market capitalization exceeding 150.00 million USD (100.00 million USD for securities that have at least 50% of their annual revenues or operating activity from quantum computing-related products or activities),

• a three-month average daily trading volume of at least 1.00 million USD (0.50 million USD for securities that have at least 50% of their annual revenues or operating activity from quantum computing related products or activities) at the current quarter and at the previous two quarters, and

• at least 0.25 million shares traded per month over the last six months at the current quarter and at the previous two quarters.

All of the following applies for securities already in the index:

• free-float of at least 5%,

• a full market capitalization exceeding 75.00 million USD, and

• a three-month average daily trading volume of at least 0.20 million USD in at least two of the latest three quarters (current quarter and at the previous two quarters). In addition, at least one of the following applies for securities already in the index:

• a three-month average daily trading volume of at least 0.60 million USD (0.40 million USD for securities that have at least 50% of their annual revenues or operating activity from quantum computing related products or activities) at the current quarter or at one of the previous two quarters, or

• at least 0.20 million shares traded per month over the last six months at the current quarter or at one of the previous two quarters.

New

Securities must meet the following size and liquidity requirements to be included in the investable universe. If composite country volume data exists, it will be used to identify the investable universe.

All of the following applies for securities that are currently not included in the index:

• free-float of at least 10%,

• full market capitalization exceeding 150.00 million USD (100.00 million USD for Quantum Computing Companies),

• a three-month average daily trading volume of at least 1.00 million USD (0.50 million USD for Quantum Computing Companies) at the current quarter and at the previous two quarters, and

• at least 0.25 million shares traded per month over the last six months at the current quarter and at the previous two quarters.

All of the following applies for securities already in the index:

• free-float of at least 5%,

• a full market capitalization exceeding 75.00 million USD, and

• a three-month average daily trading volume of at least 0.20 million USD in at least two of the latest three quarters (current quarter and at the previous two quarters).

In addition, at least one of the following applies for securities already in the index:

• a three-month average daily trading volume of at least 0.60 million USD (0.40 million USD for Quantum Computing Companies) at the current quarter or at one of the previous two quarters, or

• at least 0.20 million shares traded per month over the last six months at the current quarter or at one of the previous two quarters.

1.2.2 Initial Public Offerings, Special Purpose Acquisition Companies, and Spin-Offs

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Modified investability rules are applied for recent Initial Public Offerings (IPOs), spin-offs and post merger/acquisition Special Purpose Acquisition Companies (SPACs). Such companies qualify for fast track addition to the investable universe once; either at the next regularly scheduled review if it has been trading since at least the last trading day of the month two months prior to the review month or else at the following regularly scheduled review. In order to be added to the index the IPO security has to meet all of the following size and liquidity requirements:

• the IPO must have a full market capitalization exceeding 150.00 million USD,

• the IPO must have a free-float factor of at least 10%,

• the IPO must have an average daily trading volume of at least 1.00 million USD, and

• the IPO must have traded at least 0.25 million shares per month (or per 22 days).

This rule is applicable for newly spun-off companies and post-merger/acquisition SPACs (using the merger/acquisition date like an IPO date) as well.

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Modified investability rules are applied for recent Initial Public Offerings (IPOs), spin-offs and post merger/acquisition Special Purpose Acquisition Companies (SPACs). Such companies qualify for fast track addition to the investable universe once; either at the next regularly scheduled review if it has been trading since at least the last trading day of the month two months prior to the review month or else at the following regularly scheduled review. In order to be added to the index the IPO security has to meet the size and liquidity requirements:

• the IPO must have a full market capitalization exceeding 150.00 million USD (100.00 million USD for Quantum Computing Companies), and

• the IPO must have a free-float factor of at least 10%, and

• the IPO must have an average daily trading volume of at least 1.00 million USD, and

• the IPO must have traded at least 0.25 million shares per month (or per 22 days).

This rule is applicable for newly spun-off companies and post-merger/acquisition SPACs (using the merger/acquisition date like an IPO date) as well.

In addition, the below special periodical cases are also considered for Quantum Computing Companies IPO/spin-offs (not considering SPACs):

• A monthly review snapshot is taken based on the last trading day of each month. The same eligibility rules as for the quarterly inclusion apply on a monthly basis (except for SPACs). The new composition is implemented after close of the third Friday of the following month. The weighting cap factors are based on closing data of the Wednesday prior to the second Friday in a quarter-end month. Additions which enter the index by this rule and not the regular quarterly review receive an equal weight with the weight reduced from existing components proportionally.

• In case an IPO/Spin-off takes place between the close of the last business day of May and November and the close of the second Wednesday of June and December, respectively: If this IPO/Spin off exceeds a full market capitalization of USD 1bn on closing date of the IPO effective date, it will be added to the index on the review implementation date with an equal weight with the weight reduced from existing components proportionally.

• In case an IPO/Spin-off takes place after the close of the second Wednesday until the third Friday of June and December: If this IPO/Spin-off exceeds a full market capitalization of USD 1bn on the third Friday of June and December following the IPO effective date/if the third Friday is the IPO effective date, it will be added after close of the Friday of the following week with an equal weight with the weight reduced from existing components proportionally, based on the market data as of the Friday following the third Friday of June and December/if the third Friday is the IPO effective date.

• For all other time periods: If the IPO/Spin-off exceeds a full market capitalization of USD 1bn on the Friday following the IPO effective date/if the Friday is the IPO effective date, it will be added after close of the Friday of the following week with an equal weight with the weight reduced from existing components proportionally, based on the market data as of the Friday following the IPO effective date/if the Friday is the IPO effective date.

For the last three special periodical IPO/Spin-off cases, the following applies:

• The IPO must have a free-float factor of at least 5%, and

• Due to lack of historical data, no liquidity rule is applied.

2.1 Review Schedule

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In addition, recent IPOs and spin-offs of companies with at least 50% of their annual revenue or operating activity from quantum computing-related products or activities may enter the index in March and September according to the following procedure. Companies added to the index under this procedure are added at an equal weight with the weight reduced from existing components proportionally.

1. IPOs are required to have been trading since at least the last trading day of January or June.

2. Investability is determined based on the closing data on the last business day in February and August. If a security does not trade on the last business day in February and August, the last available price for this security will be used.

3. In order to be added to the index, the IPO must be in the selection range (Review procedure for non components apply).

4. Component weights are determined based on closing data as of the Wednesday prior to the second Friday of March and September. If a security does not trade on the Wednesday prior to the second Friday of March and September, the last available closing data for this security will be used.

5. The underlying review and rebalance data (i.e. weights, shares outstanding, free-float factors, and new weighting cap factors) is announced on the second Friday of March and September.

6. Changes will be implemented and based on the closing prices as of the third Friday of March and September. If the third Friday is not a business day, the review will take place on the last business day before the third Friday. If a security does not trade on the third Friday of March or September, then the last available price for this security will be used. Changes become effective on the next index dissemination day.

In case there is no addition due to the above mentioned IPO and spin-off, new float factors and shares are applied during quarterly reviews in March and September, but an adjustment factor will account for a constant component weight and divisor at implementation.

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In addition, recent IPOs, spin-offs, and post-merger/acquisition SPACs (using the de-SPAC/merger date as the IPO date) of Quantum Computing Companies may enter the index in March and September according to the following procedure. Companies added to the index under this procedure are added with an equal weight with the weight reduced from existing components proportionally.

1. IPOs are required to have been trading since at least the last trading day of January or June.

2. Investability is determined based on the closing data on the last business day in February and August. If a security does not trade on the last business day in February and August, the last available price for this security will be used.

3. In order to be added to the index, the IPO must be in the selection range (Review procedure for non components apply).

4. Component weights are determined based on closing data as of the Wednesday prior to the second Friday of March and September. If a security does not trade on the Wednesday prior to the second Friday of March and September, the last available closing data for this security will be used.

5. The underlying review and rebalance data (i.e. weights, shares outstanding, free-float factors, and new weighting cap factors) is announced on the second Friday of March and September.

6. Changes will be implemented and based on the closing prices as of the third Friday of March and September. If the third Friday is not a business day, the review will take place on the last business day before the third Friday. If a security does not trade on the third Friday of March or September, then the last available price for this security will be used. Changes become effective on the next index dissemination day.

In case there is no addition due to the above mentioned IPOs, spin-offs, and post-merger/acquisition SPACs, new float factors and shares are applied during quarterly reviews in March and September, but an adjustment factor will account for a constant component weight and divisor at implementation.

2.2 Selection Procedure

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Upon an index reconstitution, securities included in the eligible universe are selected to the index based on the following procedure. The index targets a coverage of 99% of the free-float market capitalization of the eligible universe with a minimum of 70 components.

1. All securities in the eligible universe are sorted in terms of free-float market capitalization in descending order.

2. Securities covering the top 98.5% of the free-float market capitalization of the eligible universe qualify for selection.

3. Current components between 98.5% and 100% of the free-float market capitalization of the eligible universe also qualify for selection.

4. In addition, all securities that meet the eligibility criteria and have at least 50% of their annual revenues or operating activity from quantum computing-related products or activities will be selected.

5. If the coverage is still below 99% of the free-float market capitalization of the eligible universe or the number of components in the index is still below 70, the largest remaining securities will be selected until both the target coverage and minimum number of components are reached.

6. In case the number of eligible securities is below the minimum of 70, additional securities are added by the Index Owner’s decision until the number of securities selected to the index reaches the minimum of 70 components.

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Upon an index reconstitution, securities included in the eligible universe are selected to the index based on the following procedure. The index targets a coverage of 99% of the free-float market capitalization of the eligible universe with a minimum of 70 components.

1. All securities in the eligible universe are sorted in terms of free-float market capitalization in descending order.

2. Securities covering the top 98.5% of the free-float market capitalization of the eligible universe qualify for selection.

3. Current components between 98.5% and 100% of the free-float market capitalization of the eligible universe also qualify for selection.

4. In addition, all securities that meet the eligibility criteria and are Quantum Computing Companies will be selected.

5. If the coverage is still below 99% of the free-float market capitalization of the eligible universe or the number of components in the index is still below 70, the largest remaining securities will be selected until both the target coverage and minimum number of components are reached.

6. In case the number of eligible securities is below the minimum of 70, additional securities are added by the Index Owner’s decision until the number of securities selected to the index reaches the minimum of 70 components.