IO Digital Infrastructure Index – Summary

The IO Digital Infrastructure Index (BYTE) is comprised of 40 global businesses that provide the infrastructure layer of the internet.

Assets such as data centers, fiber connectivity, last mile broadband, and mobile towers make up the backbone of the internet. As data consumption grows, so does the importance of high performing infrastructure to transport and store that data. The index uses an algorithm balancing growth, soundness, and value to select its 40 constituents.

As a result, digital infrastructure owners and operators win as data consumption needs grow, regardless of what specific use case is popular. 

IO Digital Index Partners uses its proprietary GSV (Growth, Soundness, and Value) algorithm to select 40 of the most well-positioned digital infrastructure companies in the world. These businesses are generally characterized by long-duration recurring cash flows, secular growth, inflation resilience, sound financial positions, and strategic competitive positions. As end-user performance expectations grow, the importance of these assets grows with it.

IO Digital Index Partners determines the the BYTE universe by focusing on businesses that generate the majority of their revenue from modern digital infrastructure assets, eliminating companies that rely on legacy technologies or are in highly competitive services industries. The reulting universe is further filtered for companies that meet minimum size, geographic, and trading volume requirements.

The Index is rebalanced semiannually, based on GSV ranking, subject to geographic and minimum liquidity constraints. At a rebalance, no less than 65% of the index weight will be in US-focused businesses. Emerging markets will be capped at 15% and non-US developed markets at 35%.

BYTE Index Market Cap, Geographic, and Industry compositions as of Sept. 30, 2021.

Fact Sheets about the BYTE Index