The SD-KPI Index methodology systematically integrates sector-specific SD-KPI Scores into conventional equity and corporate bond indices by applying structured over- and underweighting mechanisms. The approach does not rely on exclusions, but on quantitative tilting based on the SD-KPIntegration Score.

The SD-KPI methodology is currently implemented in collaboration with S&P Global within the iBoxx SD-KPI Corporate Bond Index family. These indices are tracked by a VanEck ETF (see factsheets below).

SD-KPI-based index families have previously been calculated in collaboration with STOXX (e.g., iSTOXX Europe 600 SD-KPI Index), and related institutional mandates have applied the SD-KPI tilt methodology. In addition, independent backtests have been conducted for US large-cap strategies, including SD-KPI tilt strategies relative to the S&P 500 (see pdf).

Across multiple market cycles, SD-KPI tilt methodologies have demonstrated positive excess return differentials relative to their conventional benchmark indices in historical implementations and independent backtests, while maintaining comparatively moderate tracking error levels. Observed performance effects include cumulative outperformance in European large-cap equity and corporate bond implementations over multi-year horizons, as well as positive annualized excess return differentials in US large-cap backtests.

Past performance, including backtested results, does not guarantee future results.