The Nikkei JAPAN 1000 is a free float adjusted market value-weighted index to be used as the benchmark of Japan for passive fund managers.
1000 issues (common domestic stocks) selected from all of the stock exchanges in Japan, excluding non-common stocks such as ETFs, REITs, preferred equity contribution securities, subsidiary tracking stocks.
The components are reviewed at the end of October based on the Annual Review to keep the representativeness of the market. The Annual Review is conducted based on ranking of averaged free float adjusted market value in the past 2 years. In case of delisting of the constituents due to a merger or bankruptcy, new stocks shell not be added. After the Annual Review, the number of components becomes back to 1000. Until Annual Review, the index is calculated with less than 1000 components.
The index is calculated based on free float market capitalization adjusted by IWF (Investable Weight Factor). The index is calculated by dividing the current total free float adjusted market value by “base market value”. Base market value is adjusted to maintain continuity in the index when the market value of constituents changes for non-market reasons. There is a total return version index “Nikkei JAPAN 1000D” that the dividend payments are included in the calculations.
The index has been calculated since March 31, 2005 (calculated retroactively back to November 1st, 1986). The index has a base value of 1000 as of November 1, 2002 and has been calculated at 1 minute intervals during the trading hours (from 9:01 to 11:30 and from 12:31 to 15:30).