SHOC

SHOC provides concentrated exposure to the semiconductor industry in the broad technology sector. It tracks an index comprised of the largest US-listed semiconductor companies including semiconductor manufacturers and material suppliers. Initially, the index universe is screened to comprise solely of US firms listed on a domestic exchange. After meeting further classification requirements, the eligible securities are then sorted and ranked in descending order according to market-cap. The top 30 companies are selected as constituents and are weighted in the same approach. To ensure diversification, a size capping is imposed with the five largest components maxed at 7.5% and the rest of the securities at 4.5%. The fund intends to utilize a replication strategy which means it will invest all of its assets in the securities comprising the index. However, the adviser may use a sampling strategy if it is determined to be in the best interest of shareholders. The index is reconstituted and rebalanced quarterly.