Frequently Asked Questions About EEndex

Q: What is the EEndex?

A: EEndex (or Electronic Entertainment Index) is the world’s first equity index focused on the video game industry.

Q: What’s in the EEndex?

A: Currently EEndex includes approximately 50 active companies that strongly represent the public video game industry. Four bankrupt companies are included in the index history, and three have been removed due to stockholder equity erosion. There have been numerous mergers, acquisitions,  and spinoffs over the years as well. EEndex companies are from final hardware (consoles, handhelds, peripherals, etc.), final software (games), retail sales, and intellectual property sub-sectors. The companies must meet certain sales and market cap criteria to be included.

Q: What is not in the EEndex?

A: There are well over 50 other public companies significantly involved with the video game industry that are not currently included in the index. These include content creation software companies, manufacturing firms, semiconductor companies, PC companies, and many others.

Q: How is the EEndex calculated?

A: EEndex uses a market capitalization weighted calculation methodology. Non pure-play company market caps are adjusted by our estimate of the percentage of total sales that video game product revenue represents. Foreign listed companies are currency adjusted to the U.S. dollar. The EEndex is normalized the day of a company’s entrance into, and exit from, the index. The daily EEndex value is generated once a day at 18:00 AST (GMT-4).

Q: How did EEndex come about and what is its purpose?

A: The Electronic Entertainment Index was influenced by a number of people though its creation was ultimately decided on during E3 2005 in Los Angeles, California. EEndex was first conceptualized by Tom Burkhart, CEO of The Savant Group. The largest contributor was EE Fund Advisory Board member Jake Richter, who was not only instrumental inspiring the index creation, but took an active role designing and programming the website and computational systems.

The purpose of the index is to provide a tool to measure the growth and volatility of companies participating in the video game industry; to benchmark investment returns; and to serve as a model for passive investment strategies in this sector. 

Q: Who manages the index?

A: EE Fund Management LLC, a fund management company located in San Francisco California manages EEndex. EE Fund Management is a Registered Investment Advisor and provides investment services to accredited and non-accredited investors. Ted Pollak, President and Chief Investment Officer of EE Fund Management, has been following the video game industry for 20 years. EE Fund Management can be contacted at www.eefund.com.

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EEndex Version 1.19