3S Indexation A method of analyzing a specific set of stocks and/or ETFs. This process involves creating a unique Stock set Signature.

Stock/ETF set An investment portfolio consisting exclusively of stocks and/or ETFs. 

Stock set Signature A profile of a stock set that consists of two main components: an External Trend and Internal Trends. 

External Trend The price dynamics of a stock set, typically presented as a graphical display.

This metric measures the Absolute value of the portfolio's performance.

Internal Trends The dynamics of the 3S Index iS and 3S Index iM for a given stock set, presented graphically.

This metric measures the Relative value of the portfolio against the broader market. 

3S Index iS ("in the Stocks") An index where each asset within the set is heavily weighted by an equal number of shares.

For calculation purposes, the share count for every asset is set to exactly "1".

This approach is known as the Equal-Share weighting rule.

3S Index iM ("in the Money") An index where the number of shares for each asset varies.

To evaluate the stock market as a whole, the initial share counts are calculated at the inception date

under the condition that an equal amount of capital is allocated to each asset.

This approach is known as the Equal-Dollar weighting rule.

As a specific application for evaluating a custom investment portfolio, the share quantities or capital

allocations for each asset within the 3S Index iM can be manually defined by the investor.

'incept date' The inception date of a stock/ETF set, serving as the baseline for performance tracking. This date is indicated on each chart.

 'update date' The specific date to which the data was updated and calculated. This date is indicated on each chart.

EXAMPLE :

• Broad 'incept date' Large-cap stock set, value as of 'update date' 

• 3S Index iS (Broad 'incept date' Large-cap stock set), % as of 'update date'

Market Indexation Alignment: If the purpose is stock market indexation, the 'incept date' and 'update date'

are identical (see the Methodology Notes / Dynamic Rebalancing  section also).

Broad Market A subset of equities representing the entire US stock market.

Industrial A subset of US stocks representing the industrial sector.

Financial A subset of US stocks representing the financial sector.

Energy A subset of US stocks representing the energy sector.

3S Index balance A metric that reflects the mathematical difference between two specified 3S Index values. 

EXAMPLE:

The " 3S Index iS balance (Industrial/Energy) " is calculated as the difference between: 

 " 3S Index iS (Industrial 'incept date' Large-cap stock set) " and " 3S Index iS (Energy 'incept date' Large-cap stock set) ".

Large-cap Companies with a large market capitalization. 

Small-cap Companies with a small market capitalization. 

Multi-cap An investment approach or fund that includes companies of all capitalization sizes.

This section will be supplemented as the project develops.