Why GLI24 Is Portfolio-Weighted

GLI24 is portfolio-weighted rather than rules-derived, and it says so openly. The basket was initialized from a disclosed reference portfolio at inception on 26 August 2026. Since then, constituent quantities have remained fixed between documented basket changes, and current weights drift with relative performance.

Weights are outputs, not targets

At inception each constituent carried a weight determined by its share of the USD 4,034.87 reference portfolio. Those inception weights were a starting condition, not a target allocation. From the moment prices moved, weights became an output of performance.

This has a practical consequence. An asset showing a larger current weight is not being favoured by the methodology; it has simply outperformed. There is no drift correction, no periodic reweighting to a target, and no concentration cap being enforced behind the scenes.

Why not claim rules-derived weights

A rules-derived index needs a published selection rule, a published weighting function and a published rebalancing schedule, all fixed in advance and reproducible by a third party from the rules alone. GLI24 does not yet have that, and claiming otherwise would be misleading.

What GLI24 does have is full disclosure of the inputs: the constituent list, the reference quantities, the reference prices and the timestamps. A third party can reproduce the index from those disclosed values. They cannot derive the original quantities from a selection rule, because that policy is future work, clearly labelled as such.

Basket changes and continuity

Token replacements or quantity changes are basket adjustments, not rebalances. Any adjustment methodology must preserve index continuity so that the level does not jump artificially at the moment of the change, and every adjustment is published in a public change log.

Fixed quantities keep the record honest

Fixed quantities make the index auditable. Between documented changes there is nothing discretionary happening to the basket: the only thing moving the level is price. That is a modest claim, but it is one the published data actually supports — and it is why GLI24 describes itself as a portfolio-weighted thematic research index rather than an institutional benchmark.