The EQM BAD Index is a rules-based index that seeks to provide exposure to a portfolio of (i) betting or gambling companies, (ii) alcohol and cannabis companies, and/or (iii) pharmaceutical companies. To qualify for inclusion in the Index, companies must have a minimum six-month average daily traded volume of $1 million. The companies in the investment universe are then screened to identify those that meet at least one of the criteria below (each, a “Business Category”). The resulting companies comprise the Index. i. Companies that derive a majority of their operating revenue from casinos, gaming, and online gaming operations and have a market capitalization of at least $10 million; ii. Companies that derive a majority of their operating revenue from the manufacturing and distribution of alcohol and/or cannabis cultivation and have a market capitalization of at least $1 million; iii. Companies that derive a majority of their operating revenue from pharmaceutical drug and biotechnology product development and manufacturing and have a market capitalization of at least $1 million. The Index Provider utilizes issuer financial statements and other public filings and reports, as well as third-party industry research, reports, and analyses, to identify companies that meet the Index’s criteria for inclusion in one of the Business Categories above. Copyright The BAD Investment Company. All rights reserved. BAD is licensed by The BAD Investment Company. Find it in your investment platform today (NYSE: BAD).