SAN DIEGO--(BUSINESS WIRE)--Effective June 1, 2018, EQM Indexes and Brandometry, have launched a new index to be tracked by the Brand Value ETF (NYSE: .BVAL). Utilizing Tenet Partners’ proprietary Brand Power Score methodology, the index is designed to outperform the broader market by identifying companies with strong brands whose brand value has not been fully appreciated by the market.
The EQM Brand Value Index (.BVAL), powered by Thomson Reuters, holds U.S. large cap companies and U.S. exchange-traded ADRs $1 billion in market cap and above. The index methodology is rules-based and equally weights the top 50 companies exhibiting both a discount of brand and intangible asset value to market capitalization and a positive return on invested capital (ROIC).
“Having a strong brand can translate to a company’s bottom line by generating a reputational halo that confers a level of stakeholder loyalty,” according to Brandometry President Tony Wenzel, who notes that companies with strong brands also tend to have wide economic “moats,” giving them a distinct competitive advantage in the marketplace.
EQM Indexes specializes in building indexes that capitalize on secular and industry transformation. According to EQM Indexes CEO Jane Edmondson, “A company’s value can no longer be viewed in terms of tangible assets such as property, plants and equipment. Intangible assets such as data, intellectual capital and brand value may not explicitly appear on financial statements, but they are a key to recognizing a company’s intrinsic value.”
Intellectual property specialist Ocean Tomo1 estimates that 88% of the value of the market now resides in intangible assets such as brand value. To learn more about the “Investment Case for Brand Value”, download EQM Indexes’ free white paper.
1 Ocean Tomo Intangible Asset Market Value Study, 2017. http://www.oceantomo.com/intangible-asset-market-value-study/
About EQM Indexes
EQM Indexes LLC is a woman-owned firm dedicated to creating and supporting innovative indexes that track growth industries and emerging investment themes. Co-founded by Jane Edmondson, a former Institutional Portfolio Manager with more than 25 years in the investment industry, our index design expertise spans a wide range of asset classes and financial instruments. We partner with issuers and work jointly with other index firms to provide benchmarks for Exchange Traded Products (ETPs) such as Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), and other similar products. EQM Indexes LLC also assists firms on a fee basis to design and implement their index ideas.
Brandometry provides research for advisors and clients striving for alpha performance by signaling when to own leading brands. Brandometry has pioneered a new, non-traditional index based on “Brand.” The Brand Value Index identifies companies worthy of investment that share high value potential and positive brand resonance. The Index uses a rules-based methodology to identify strong brands that maintain brand equity value not reflected in share price.
About Tenet Partners
The underlying analysis of the EQM Brand Value Index includes a cross reference to historical brand value metrics provided by Tenet Partners, a highly recognized authority on brand measurement and valuation that currently analyzes over 1,000 US publicly traded companies comprising the Tenet℠ CoreBrand® 1000. Tenet uses a highly stable, quantitative benchmark tracking system with a proprietary model correlating corporate brand to market capitalization. Tenet has been compiling quarterly brand data for US companies consistently since 1994.
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