1.3 Activity Weights

To identify how many companies to include from each sector, we compute a proxy for sector/activity weights within each country. Using data from the Bureau of Economic Analysis (BEA, 2024) and Eurostat (Eurostat, 2024), we obtain cross-country sectoral GDP contribution data for each year and use that to split the GDP across PECCS™ activity classes. We also perform adjustments to the sectoral share to account for industry definitions and the tangibility of companies in each sector, all of which affect the capital structure choices and hence the institutional investability of these indices. The results of such sectoral attribution are shown in the figure below for the year 2022, aggregated by regions for readability.

_{BEA (2024). Bureau of Economic Analysis. Gross Output by Industry. U.S. Department of Commerce. Accessed July 12, 2024. https://www.bea.gov/data/industries/gross-output-by-industry.}

_{Eurostat (2024). Statistics Explained. European Commission. Accessed July 12, 2024. https://ec.europa.eu/eurostat/statistics-explained/index.php.}