Overview
The Russia IT Index (RITIX) is a rules-based equity benchmark measuring the performance of publicly traded Russian technology companies. Its constituents are common shares with primary listings on the Moscow Exchange. The index is intended to serve as an internal benchmark for portfolios and advisory mandates focused on Russian information technology equities, and as a reference point for research and model portfolios. It is not designed to function as the underlying index for publicly offered investment products.
Eligibility
To be eligible for inclusion, a security must satisfy all of the following:
- The issuer is incorporated in the Russian Federation or is predominantly Russia-linked.
- The security is a common share with a primary listing on the Moscow Exchange.
- The issuer is classified in the GICS Information Technology sector, or — for issuers not classified as IT under GICS — derives more than 50% of its revenue from technology activities (software, IT services, cybersecurity, internet platforms, digital infrastructure, data processing, semiconductors, hardware, and related digital services).
- Minimum free-float of 5%.
No standalone liquidity filter is applied. No sanctions-exclusion filter is applied. No single-name concentration limit is applied as an eligibility condition.
Weighting
RITIX is a square-root free-float-adjusted market-capitalisation weighted index. At each rebalancing, the target weight of each component is:
wᵢ = √Mᵢ ÷ Σⱼ √Mⱼ
where Mᵢ is the free-float-adjusted market capitalisation of component i, computed from MOEX price data, shares outstanding, and free-float data, and the sum is taken across all index constituents.
Under this scheme, a component with free-float-adjusted market cap 100× larger than another receives approximately 10× the weight — rather than 100× as it would under standard cap-weighting. The natural compression of the square-root function acts as a diversification mechanism; no individual or aggregate weight caps are applied.
The Index Committee notes that the resulting weight distribution does not satisfy the UCITS 5/10/40 diversification rule applicable to certain pooled vehicles. The index is intended as an internal benchmark, not as the underlying index for publicly offered investment products.
Index calculation
The index is computed as a price-return, market-cap-weighted index in RUB using the divisor methodology:
Iₜ = ( Σᵢ Mᵢ,ₜ ) ÷ D
where Mᵢ,ₜ is the free-float-adjusted market value of constituent i at time t and D is the index divisor. The initial divisor is fixed at the base date such that I₀ = 1,000 by construction. The divisor is adjusted at constituent changes, corporate actions, and other non-market events that would otherwise produce a discontinuous jump in the index level.
Rebalancing
The index composition and weights are reviewed quarterly. Changes take effect on the first trading day of the following calendar quarter. The cut-off date for the quarterly review is 10 trading days before the effective date.
An issuer that becomes eligible after the base date (for example, through an IPO) is not added until the first quarterly review following the start of trading on MOEX.
Corporate actions
Corporate actions are reflected in a way that preserves continuity of the index level and ensures the index reflects market dynamics rather than mechanical changes in capital structure.
- Splits, reverse splits, bonus issues. Shares and reference prices adjusted; divisor unchanged.
- Rights issues. Treated as market-cap-neutral; divisor adjusted as needed for continuity.
- Spin-offs. Spun-off entity reviewed at the next composition review. Temporary inclusion permitted at Committee discretion.
- Special dividends causing a non-market price drop. Price and divisor adjusted to avoid an artificial level reduction.
- Delisting. Removed at the last available market price; divisor adjusted.
- Cash takeovers. Target removed on the effective date; cash treated as reinvested in remaining components via divisor adjustment.
- Share-for-share M&A. Handled per the transaction terms and Committee determination.
Version history
- v1.0 — April 2026. Initial methodology. Free-float cap-weighted with a 20% soft cap; fixed initial divisor of 10.
- v1.1 — April 2026. Flexible-divisor revision. Initial divisor computed at the base date as D₀ = M₀ ÷ I₀, ensuring I₀ = 1,000 by construction.
- v1.2 — April 2026. UCITS-like diversification limits (15% / 60%); superseded by v1.4.
- v1.4 — April 2026. Current. Square-root weighting replaces the UCITS-like limits regime. Section 7.1 clarified for new-issuer treatment. Section 5.1 (“Diversification limits”) of v1.2 deleted.