The Valor B3 Index – 2nd Tier (IVBX 2) is compiled as a weighted average of a theoretical portfolio of stocks pursuant to criteria set forth in this methodology.
The IVBX 2 has been developed in a joint collaboration between B3 and the Valor Econômico newspaper to measure total returns on a hypothetical portfolio constituted of stocks of well-regarded issuers. The index constituents rank in a second tier of stocks which starts from the top 11th position in terms of both market capitalization and liquidity.
The indices compiled by B3 adopt concepts and practices set forth in the Concepts and Practices Manual for B3 Indices.
The IVBX 2 is designed to measure average performance tracking changes in the prices of 50 stocks selected by liquidity (as measured in descending order by individual Tradability Ratio over a period comprising the three previous portfolio cycles), except that stocks ranking in the top ten positions by liquidity (Tradability Ratio) or market capitalization are not included in the index universe.
The IVBX 2 is a total return index (see the Concepts and Practices Manual for B3 Indices).
The IVBX 2 is composed exclusively of shares and units representing shares of B3-listed issuers that meet the inclusion criteria set forth below.
The index universe excludes Brazilian Depositary Receipts (BDRs) and shares of issuers under judicial or extrajudicial reorganization, government- or court-ordered administration or intervention, as well as shares otherwise designated to be under exceptional trading status (see the Concepts and Practices Manual for B3 Indices).