Index description

Universe of Index Components
Stocks
STEP 1:
Initial Universe Filtering:
• Scope: Publicly listed companies domiciled in EU-27, UK, Switzerland, Norway, Israel, and
Turkey.
• Sector Classification: Firms categorized under Aerospace & Defense (Impact Cubed Sector
Classification).
• Market Capitalization Threshold: Only include companies with a market capitalization
greater than €150 million as of the latest available data point.
STEP 2:
Domain Flagging: The vendor-provided flags for each of the five domains will be used to assess
thematic eligibility. Only companies actively involved in at least three domains will proceed to the next
stage. The assessment is based on a review of company disclosures, public R&D initiatives, project
announcements, or participation in national/EU defense programs which is carried out by Impact
Cubed.
• Domains of Interest:
1. Artificial Intelligence
2. Cybersecurity
3. Autonomous Systems
4. Drones / UAVs
5. Quantum Applications
STEP 3:
Innovation Screening (R&D Intensity)
• R&D-to-Revenue Ratio: Compute the latest fiscal-year R&D expense divided by revenue.
Companies must exceed a minimum R&D/Sales ratio of 5% to emphasize innovation focus.