Our innovation factor indices select and weight companies based on their propensity for innovation. We gauge propensity for innovation using a Composite Innovation Score, a proprietary metric developed by S&P Dow Jones Indices that is made up of two components: an Early-Stage Innovation Score and an Innovation Output Score. The Early-Stage Innovation Score represents the combination of the resources a company allocates to innovation and the degree to which the company stresses an innovative culture and mission. The Innovation Output score reflects the degree to which a company successfully executes its innovation agenda, including metrics related to intellectual property, such as patents and research; the acceleration in product development; and financially oriented indicators, such as lower expense ratios and higher revenue growth.
All information for an index prior to its Launch Date is hypothetical back-tested, not actual performance, based on the index methodology in effect on the Launch Date. Back-tested performance reflects application of an index methodology and selection of index constituents with the benefit of hindsight and knowledge of factors that may have positively affected its performance, cannot account for all financial risk that may affect results and may be considered to reflect survivor/look ahead bias. Actual returns may differ significantly from, and be lower than, back-tested returns. Past performance is not an indication or guarantee of future results. This back-tested data may have been created using a “Backward Data Assumption”. For more information on “Backward Data Assumption” and back-testing in general, please see the Performance Disclosure.