Most major cap-weighted indexes are rebalanced quarterly, semi-annually, or annually. This rebalancing consists of adding and removing securities based on market cap fluctuations throughout the quarter.
It’s up to the index provider to make and publicize these changes, usually at or in the days after the end of a quarter. The indexes created by OTC Markets all rebalance at the end of every quarter to account for the changing prices of their components. Here’s how each of the market’s major indexes rebalanced at the end of Q3:
The OTCQX Banks Index closed Q3 with 67 holdings and up 0.5%. Seventeen companies were added to the index, including Chesapeake Financial Shares, Inc. (OTCQX: CPKF) and PSB Holdings Inc. (OTCQX: PSBQ).
The OTCQX Composite Index, the benchmark for tracking the overall performance of the most transparent domestic and international companies on OTC Markets, closed down 1.25% for the third quarter. There are 365 members of the index, 54 of which were added at the end of Q3. Notable adds include Grayscale Ethereum Trust (ETH) (OTCQX: ETHE), Overstock.com, Inc. (OTCQX: OSTBP), and Trulieve Cannabis Corporation (OTCQX: TCNNF).
Thirty-nine securities were removed from the index, including Stereotaxis, Inc. (MKT: STXS) and Avita Medical Ltd. (NASDAQ: RCEL), both graduated to NYSE American and Nasdaq.
The OTCQX Billion+ Index, which tracks the $1 billion-plus market cap companies trading on OTCQX, finished down 1.02% in Q3. Three new companies joined the index while five companies were removed, bringing the total to 59.
Companies added were Green Thumb Industries Inc. (OTCQX: GTBIF), Interconexion Electrica S.A. E.S.P. - ISA (OTCQX: IESFY), and U.S.-based Computer Services, Inc. (OTCQX: CSVI), which joins the Grayscale Bitcoin Trust (BTC) (OTCQX: GBTC) as the only domestic companies in the index.
The five companies removed were Acreage Holdings Inc. (OTCQX: ACRGF), Koninklijke Ahold Delhaize N.V. (OTCQX: ADRNY), Ocean Yield ASA (OTCQX: OYIEF), Software AG (OTCQX: STWRY), and UPM-Kymmene Corp. (OTCQX: UPMMY).
The OTCQX Dividend Index finished Q3 down 0.8% with 113 holdings. Twenty-two new companies were added to the index in the quarter while 12 companies were removed. Eleven of those companies were removed for stopping their dividend programs, while Alerus Financial Corp. (NASDAQ: ALRS) graduated to Nasdaq.
Over half of the securities that trade on OTCQX are based in the U.S. Of those, 120 are in the OTCQX U.S. Index. The index closed down 7.8% in Q3, with 27 additions and 17 deletions.
Notable additions include MariMed Inc. (OTCQX: MRMD), Prime Meridian Holding Co. (OTCQX: PMHG), and Calvin B. Taylor Bankshares, Inc. (OTCQX: TYCB). Deletions include Forbes Energy Services Ltd. (OTCQX: FLSS) and Amplify Energy Corp. (NY: AMPY).
OTC Markets’ newest index closed down 27.2% in Q3. The total number of companies in the index stayed constant, as eight companies were added and eight were removed.
The companies added were Australis Capital Inc. (OTCQX: AUSAF), Dixie Brands Inc. (OTCQX: DXBRF), Eve and Co Incorporated (OTCQX: EEVVF), Green Thumb Industries Inc. (OTCQX: GTBIF), InMed Pharmaceuticals, Inc. (OTCQX: IMLFF), Medicine Man Technologies Inc. (OTCQX: MDCL), Trulieve Cannabis Corporation (OTCQX: TCNNF), and Valens Groworks Corp (OTCQX: VGWCF).
The eight companies removed were Beleave Inc., Emerald Health Therapeutics Inc. (OTCQX: EMHTF), Harvest One Cannabis Inc. (OTCQX: HRVOF), Invictus MD Strategies Corp. (OTCQX: IVITF), Lifestyle Delivery Systems, Inc., Next Green Wave (OTCQX: NXGWF), Radient Technologies Inc (OTCQX: RDDTF), and THC BioMed Intl Ltd. (OTCQX: THCBF).
The OTCQX Canada Index, the benchmark for tracking the overall performance of all the Canadian securities that are traded on OTCQX, closed down 10.4% in the third quarter. Twenty-seven new companies joined the index, including Rocky Mountain Dealerships Inc. (OTCQX: RCKXF), while 16 companies were removed.
The index closed down 1.2% in Q3. The 245-company index received 31 additions and 22 deletions at the end of the quarter. Semiconductor Manufacturing International Corp. (OTCQX: SMICY) highlights the new additions.
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