Index Methodology
The DFMREIT token tracks the DFM Real Estate Sector Index (DFMREI) — published by the Dubai Financial Market and calculated by S&P Dow Jones Indices.
The reference index: DFMREI
The DFMREI measures the price performance of DFM-listed companies classified under the Real Estate sector according to the Global Industry Classification Standard (GICS).
Index Owner
Dubai Financial Market (DFM)
Calculation Agent
S&P Dow Jones Indices (S&P DJI)
Calculation basis
Price Return — capital gains and losses from share price movements only
Publication
Real-time during DFM trading hours
Base currency
UAE Dirham (AED)
The DFM acts as Index Owner. S&P DJI serves as the independent calculation agent, computing constituent weights on an end-of-day (EOD) basis in accordance with the official DFM Index Procedures (Version 22-01, November 2022).
Weighting method
The DFMREI is free-float-adjusted, market-capitalisation weighted.
Each constituent's weight reflects its total market capitalisation adjusted by a Free Float Factor (FFF). The FFF excludes shares held by major shareholders, strategic investors, and other non-freely-tradeable blocks — ensuring the index reflects genuinely investable market activity.
The FFF is assigned on a tiered basis:
5% – 25%
25% of market capitalisation
25% – 50%
50% of market capitalisation
50% – 75%
75% of market capitalisation
Above 75%
100% of market capitalisation
Companies with a Free Float Factor below 5% are not eligible for index inclusion.
Single-constituent weight cap
No single constituent may exceed a 10% weight at rebalancing.
Any constituent whose free-float-adjusted market cap weight exceeds 10% at the Rebalancing Reference Date is capped at 10%, with the excess redistributed proportionally across the remaining constituents.
Rebalancing schedule
The index is reviewed and rebalanced quarterly.
Rebalancing Reference Date
Close of trading on the Wednesday prior to the second Friday of the rebalancing month
Rebalancing Effect Date
Monday market open following the close of the third Friday of the rebalancing month
Constituent weights are updated at the open of the Rebalancing Effect Date. Eligibility is assessed using market data from the preceding three months.
Corporate actions
Splits, dividends, rights issues, spin-offs, mergers, and delistings are handled by S&P DJI in accordance with the S&P Corporate Actions Table (Appendix 2 of the DFM Index Procedures). Changes are announced at least one business day before implementation. Fractit's SPV operations team follows the same corporate action policy to maintain 1:1 replication fidelity.
Index governance principles
The DFM Index Procedures are governed by five principles:
Constituents are freely tradable and have adequate liquidity relative to their size.
The index has operational continuity and only includes frequently traded securities.
Constituent weightings are representative of the market being measured.
All decisions are governed by an independent Index Policy Committee.
The methodology is transparent, with public consultation before any changes are introduced.
Last updated