Alternative energy indexes
Encyclopedia
The principle governing the indices, apart from a regional or global focus, is that some focus on clean energy technologies while others focus on the broader alternative energy
transition. Other factors which differentiate the indices are whether they:
, solar power
, biomass
, geothermal energy, hydropower
or fuel cell
sector to be included in the index.
Run by International Economic Platform for Renewable Energies (IWR)
, energy minerals, hydrogen
, and clean energy technologies. The index is rule based and the constituent list includes the top 25 global companies in all sub-sectors except hydrogen where all companies are included.
Run by Bakers Investment Group
technologies; environmental technologies including water and air quality; energy efficiency
; and, enabling technologies including electronic, batteries, superconductors and advanced materials.
. The index comprises 30 companies in five sub-sectors: Natural Gas, Wind, Solar, Bio-energy/Biomass, Geothermal/Hydropower/Fuel cells/Batteries. At the inception date and then at each Rebalancing Date, all five sectors will be capped to 20% to prevent individual sectors from dominating the Index. Stocks selected are major players in their Alternative Energy sectors and/or Alternative Energy activity represents at least 20% of the company’s annual sales.
investment and research branch of Deutsche Bank
's asset management business, and NASDAQ OMX Group
, Inc created the DB NASDAQ OMX Clean Tech Index. The index comprises 119 companies identified by DBCCA from a global universe of ~4,000, each with at least a third of revenues derived from clean technology within investable geographies and exchanges identified by NASDAQ OMX. Of these, 106 companies have over 50% clean tech revenue, with only identifiable revenue from filed financial statements used for the index. Constituent companies must have market capitalization of at least $250 million as of 12/31/09 and over $1 million average daily dollar trading volume for the three months prior to 12/31/09. Covered sectors include clean energy, energy efficiency, transport, waste management
and water. http://www.dbcca.com/dbcca/EN/products_2286.jsp
, efficiency materials, pollution control, emerging hydrogen and fuel cells. Diversification is provided by an equal-weighting methodology modified by sector and market capitalization bands.
, the Index tracks the 20 largest stocks involved in: Renewable energy (solar, wind and biomass). Energy efficiency (better use of energy generation, which involves industries such as energy meters and superconductors). and Decentralized energy supply (power generation in close proximity to the consumer, involving micro-turbines and fuel cells). WAEX is an equally weighted benchmark, that is the weight of each member is set at 5% on quarterly basis.
, pollution control and waste management companies. FTSE has set up an independent committee of clean technology and investment professionals to govern the research and management of the FTSE ET50 Index. The Chair is Winston Hickox, former Secretary of the State of California Environmental Protection Agency
who also designed and implemented the environmental investment mandates for the California public employees retirement fund, CalPERS
.FTSE Environmental Technology Index Series
.
Run by Bakers Investment Group
, Middle East
and Asia
with the same focus as the Ardour Global Alternative Energy IndexSM.
with the same focus as the Ardour Global Alternative Energy IndexSM.
-listed small-mid cap companies focused on renewable energy. The index has been established in April 2008. The Index uses a value weighted methodology. In April 2010 the total market capitalisation was € 1.2 billion.
-free based energy generation. This index tracks 18 US-listed, alternative energy companies involved in hydrogen/fuel cells, solar, wind, hydropower, geothermal, nuclear, battery, utilities, technologies and bio-fuel .
.
Research.
Run by Ludlow Energy Ventures, Inc.
, NYSE or AMEX
.
Issuers of the security must be classified, according to Clean Edge
, as technology manufacturers, developers, distributors, and/or installers in one of the following sub-sectors:
or coal
. Large companies with interests outside clean energy may be included if they are significant to this sector. There is a strong bias in favor of the pure-play companies in wind power, solar power, hydrogen and fuel cells, bio-fuels, and related fields; companies in relevant fields such as hydroelectric, geothermal, wave, tidal, waste heat recapture and others are considered with respect to carbon content, the impacts upon marine and terrestrial biodiversity
, and degree to which they advance or reflect the clean energy sector. ECO components are evenly divided within a sector to assign weights.
Alternative energy
Alternative energy is an umbrella term that refers to any source of usable energy intended to replace fuel sources without the undesired consequences of the replaced fuels....
transition. Other factors which differentiate the indices are whether they:
- focus on pure playPure playIn financial management, a pure play is a company whose shares are publicly traded and that either has, or is very close to having, a single business focus. Coca-Cola is an example of a pure play in this context because it retails only beverages...
companies – that is on companies which are principally engaged in the field of alternative energy and excludes those companies for which alternative energy is peripheral to their main business. - use a rule based approach – that is a clearly defined rules-based methodology, usually overseen by an impartial Index Committee, employing a pre-defined screening methodology ensures that the process is consistent and transparent.
- are inclusive – that is strives to include all companies that are principally engaged in the field of alternative energy within a given market, a given region, or globally. Some indexes set a liquidity or market capitalizationMarket capitalizationMarket capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
filter while others track just a predetermined number of companies (i.e. the top 15 or the top 20).
RENIXX World
The RENIXX World (Renewable Energy Industrial Index) was established in May 2006 and is the first global stock index, which comprises the performance of the world's 30 largest companies of the renewable energy industry whose weighting in the index is based on the market capitalization. Companies must achieve at least 50 percent of their revenue in the renewable energy industry coming from the wind energyWind energy
Wind energy is the kinetic energy of air in motion; see also wind power.Total wind energy flowing through an imaginary area A during the time t is:E = ½ m v2 = ½ v 2...
, solar power
Solar power
Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a range of ever-evolving technologies. Solar radiation, along with secondary solar-powered resources such as wind and wave power, hydroelectricity and biomass, account for most of the available...
, biomass
Biomass
Biomass, as a renewable energy source, is biological material from living, or recently living organisms. As an energy source, biomass can either be used directly, or converted into other energy products such as biofuel....
, geothermal energy, hydropower
Hydropower
Hydropower, hydraulic power, hydrokinetic power or water power is power that is derived from the force or energy of falling water, which may be harnessed for useful purposes. Since ancient times, hydropower has been used for irrigation and the operation of various mechanical devices, such as...
or fuel cell
Fuel cell
A fuel cell is a device that converts the chemical energy from a fuel into electricity through a chemical reaction with oxygen or another oxidizing agent. Hydrogen is the most common fuel, but hydrocarbons such as natural gas and alcohols like methanol are sometimes used...
sector to be included in the index.
Run by International Economic Platform for Renewable Energies (IWR)
ALTEXGlobal
Tracking 138 companies the ALTEX Global is the world's largest Alternative Energy Index with an aggregated market capitalization of $1.16 trillion USD . The focus is on pure play companies involved in the transition to diversified low-emissions energy infrastructure. Sub-sectors tracked are: low-emission utilities, renewables, natural gasNatural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, energy minerals, hydrogen
Hydrogen
Hydrogen is the chemical element with atomic number 1. It is represented by the symbol H. With an average atomic weight of , hydrogen is the lightest and most abundant chemical element, constituting roughly 75% of the Universe's chemical elemental mass. Stars in the main sequence are mainly...
, and clean energy technologies. The index is rule based and the constituent list includes the top 25 global companies in all sub-sectors except hydrogen where all companies are included.
Run by Bakers Investment Group
Bakers Investment Group
Bakers Investment Group Pty. Ltd is a specialist financial services firm that provides listed and unlisted companies with Research, Corporate Advisory and Capital Raising services....
Ardour Global Alternative Energy IndexSM
Tracking 111 companies . The focus is on pure play companies using a rule based approach which is inclusive in the clean energy technologies sector. Companies are involves in the following areas of focus: alternative energy resources (technologies for solar, wind, hydro, tidal, wave, geothermal and bio-energy); distributed generationDistributed generation
Distributed generation, also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or distributed energy, generates electricity from many small energy sources....
technologies; environmental technologies including water and air quality; energy efficiency
Energy efficiency
Energy efficiency may refer to:*Efficient energy use, sometimes simply called energy efficiency.*Energy conversion efficiency, the ratio between the output and input of an energy conversion machine....
; and, enabling technologies including electronic, batteries, superconductors and advanced materials.
Credit Suisse Global Alternative Energy Index
This index treats alternative energy as a “diversified technology,” according to Credit SuisseCredit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
. The index comprises 30 companies in five sub-sectors: Natural Gas, Wind, Solar, Bio-energy/Biomass, Geothermal/Hydropower/Fuel cells/Batteries. At the inception date and then at each Rebalancing Date, all five sectors will be capped to 20% to prevent individual sectors from dominating the Index. Stocks selected are major players in their Alternative Energy sectors and/or Alternative Energy activity represents at least 20% of the company’s annual sales.
DAXglobal Alternative Energy Index
The DAXglobal Alternative Energy Index tracks the performance of 15 alternative energy companies . Companies which are selected for the index must generate more than 50 percent of their revenues in one of the following five sub-sectors: Natural Gas, Solar, Wind, Ethanol, Geothermal/Hybrids/Batteries. The DAXglobal Alternative Energy Index has a transparent, rule-based structure. The index comprises three constituents each from five the five sub-sectors, with equal sector weightings. Within each sector, constituents are selected on the basis of market capitalization, and of a minimum average exchange trading volume of USD 1 million.DB NASDAQ OMX Clean Tech Index
DB Climate Change Advisors, the climate changeClimate change
Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...
investment and research branch of Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
's asset management business, and NASDAQ OMX Group
NASDAQ OMX Group
NASDAQ OMX Group, Inc. is a United States public company that owns and operates the NASDAQ stock market and eight European stock exchanges in Armenia plus the Nordic and Baltic regions under the OMX banner...
, Inc created the DB NASDAQ OMX Clean Tech Index. The index comprises 119 companies identified by DBCCA from a global universe of ~4,000, each with at least a third of revenues derived from clean technology within investable geographies and exchanges identified by NASDAQ OMX. Of these, 106 companies have over 50% clean tech revenue, with only identifiable revenue from filed financial statements used for the index. Constituent companies must have market capitalization of at least $250 million as of 12/31/09 and over $1 million average daily dollar trading volume for the three months prior to 12/31/09. Covered sectors include clean energy, energy efficiency, transport, waste management
Waste management
Waste management is the collection, transport, processing or disposal,managing and monitoring of waste materials. The term usually relates to materials produced by human activity, and the process is generally undertaken to reduce their effect on health, the environment or aesthetics...
and water. http://www.dbcca.com/dbcca/EN/products_2286.jsp
S&P Global Clean Energy Index
The S&P Global Clean Energy Index tracks 30 companies from around the world that are involved in clean energy related businesses . The index is based on a diversified mix of Clean Energy Production and Clean Energy Equipment & Technology companies including a number of firms involved in wind and solar. The index uses a rule based approach. The aggregate market capitalization is around US$ 224 billion.Wilderhill New Energy Global Innovation Index
This index tracks 86 companies that concentrate on renewable energy technologies and processes, with an emphasis on clean power and energy efficiency (the latter including both storage and demand-side management). The index uses a rule based approach to identify companies active in wind, solar, bio-fuels, hydro, wave and tidal, geothermal and other renewable energy businesses, as well as energy conversion, storage, conservationConservation
Conservation may refer to:* Conservation movement, to protect animals, fungi, plants and their habitats** Conservation biology, the science of the protection and management of biodiversity...
, efficiency materials, pollution control, emerging hydrogen and fuel cells. Diversification is provided by an equal-weighting methodology modified by sector and market capitalization bands.
World Alternative Energy Index
Run by Société GénéraleSociété Générale
Société Générale S.A. is a large European Bank and a major Financial Services company that has a substantial global presence. Its registered office is on Boulevard Haussmann in the 9th arrondissement of Paris, while its head office is in the Tours Société Générale in the business district of La...
, the Index tracks the 20 largest stocks involved in: Renewable energy (solar, wind and biomass). Energy efficiency (better use of energy generation, which involves industries such as energy meters and superconductors). and Decentralized energy supply (power generation in close proximity to the consumer, involving micro-turbines and fuel cells). WAEX is an equally weighted benchmark, that is the weight of each member is set at 5% on quarterly basis.
FTSE ET50 Index
Designed and launched as the ET50 in 1999 by Impax Asset Management, the index was re-branded the FTSE ET50 in December 2007 after FTSE Group, in partnership with Impax, took over calculation and management. The FTSE ET50 Index measures the performance of the largest 50 companies globally whose core business is in the development and deployment of environmental technologies (at least 50% of their business must be derived from ET). This includes alternative energy, water treatmentWater treatment
Water treatment describes those processes used to make water more acceptable for a desired end-use. These can include use as drinking water, industrial processes, medical and many other uses. The goal of all water treatment process is to remove existing contaminants in the water, or reduce the...
, pollution control and waste management companies. FTSE has set up an independent committee of clean technology and investment professionals to govern the research and management of the FTSE ET50 Index. The Chair is Winston Hickox, former Secretary of the State of California Environmental Protection Agency
California Environmental Protection Agency
The California Environmental Protection Agency is a state cabinet-level agency within the government of California. Cal/EPA is composed of six departments, boards and offices responsible for environmental research, regulating and administering the state's environmental protection programs, and...
who also designed and implemented the environmental investment mandates for the California public employees retirement fund, CalPERS
CalPERS
The California Public Employees' Retirement System or CalPERS is an agency in the California executive branch that "manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families"...
.FTSE Environmental Technology Index Series
FTSE Environmental Opportunities All-Share Index
Aligned with the FTSE ET50 Index, this index measures the performance of a broader basket of over 450 global stocks that have at least 20% of their business derived from environmental markets and technologies. Environmental Technology business activities include alternative energy, water treatment, pollution control and waste management.ALTEXAustralia
Established October 2006 tracking over 120 companies with an aggregated market capitalization of $52.1 billion AUD . The focus is on pure play companies involved in the transition to diversified low-emissions energy infrastructure. Sub-sectors tracked are: low-emission utilities, renewable energy companies, natural gas, energy minerals, hydrogen, and clean energy technologies. The index is rule based and the constituent list includes all compliant companies on the Australian Stock ExchangeAustralian Stock Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
.
Run by Bakers Investment Group
Bakers Investment Group
Bakers Investment Group Pty. Ltd is a specialist financial services firm that provides listed and unlisted companies with Research, Corporate Advisory and Capital Raising services....
Ardour Global Index (EMEA)SM
Tracks 30 companies . A regional index for EuropeEurope
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
and Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
with the same focus as the Ardour Global Alternative Energy IndexSM.
Ardour Global Index (North America) SM
Tracks 60 companies . A regional index for North AmericaNorth America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
with the same focus as the Ardour Global Alternative Energy IndexSM.
Italian Renewable Energy Index (IREX)
Run by Althesys Strategic Consultants, the Index tracks 9 ItalyItaly
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
-listed small-mid cap companies focused on renewable energy. The index has been established in April 2008. The Index uses a value weighted methodology. In April 2010 the total market capitalisation was € 1.2 billion.
ISE Earth Wind & Fire Index (EWF)
Provides a benchmark for investors interested in tracking companies actively involved in hydrocarbonHydrocarbon
In organic chemistry, a hydrocarbon is an organic compound consisting entirely of hydrogen and carbon. Hydrocarbons from which one hydrogen atom has been removed are functional groups, called hydrocarbyls....
-free based energy generation. This index tracks 18 US-listed, alternative energy companies involved in hydrogen/fuel cells, solar, wind, hydropower, geothermal, nuclear, battery, utilities, technologies and bio-fuel .
ISE Global Wind Energy (GWE)
Provides a benchmark for investors interested in tracking public companies that are active in the wind energy industry based on analysis of those companies’ products and services.
Ludlow Energy Index
Tracks 30+ alternative energy stocks from US markets focused towards the solar, wind, and bio-fuel markets. The Ludlow Energy Index is privately managed by Ludlow Energy Advisors, LLC. The Index tracks the performance of the Ludlow Energy Index Fund, which invests 70% of its assets equally into free trading common shares of each component within the index, with the remaining 30% reserved to bring new green energy issues public, and to hedge the index gains from any sharp market downturns.Merrill Lynch Renewable Energy Index
The Index tracks 31 stocks and is intended to provide exposure to stocks likely to benefit from the renewable/alternative energy sector globally. The Index consists of three sub-indices – bio-fuels, wind and solar. The index’s components represent both pure-plays and more diversified firms. The current constituents of the ML Renewable Energy Index selected by Merrill LynchMerrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
Research.
Run by Ludlow Energy Ventures, Inc.
NASDAQ Clean Edge U.S. Liquid Series Index
The that are primarily manufacturers, developers, distributors, or installers of clean-energy technologies. An exchange traded fund (ETF) is based on the Index and is sponsored by First Trust Advisors L.P. To be eligible for inclusion in the Index, the security must be listed on NASDAQNASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
, NYSE or AMEX
AMEX
AMEX, AmEx or Amex may refer to:*American Stock Exchange*American Express, a global financial services corporation*American Express Community Stadium, association football stadium in Brighton, England, currently sponsored by American Express...
.
Issuers of the security must be classified, according to Clean Edge
Clean Edge
Clean Edge is a leading U.S. research and publishing firm that helps companies, investors, and policymakers understand and profit from clean technologies...
, as technology manufacturers, developers, distributors, and/or installers in one of the following sub-sectors:
- Advanced Materials (nanotech materials, advanced membranes, silicon-based materials and alternatives, bioplastics, etc. that enable clean-energy technologies and/or reduce the need for petroleum-based materials);
- Energy Intelligence (conservation, automated meter reading, energy management systems, smart grid, superconductors, power controls, etc.);
- Energy Storage & Conversion (advanced batteries, hybrid drivetrains, hydrogen, fuel cells for stationary, portable, and transportation applications, etc.); and
- Renewable Electricity Generation & Renewable Fuels (solar photovoltaics, concentrating solar, wind, geothermal, and ethanolEthanolEthanol, also called ethyl alcohol, pure alcohol, grain alcohol, or drinking alcohol, is a volatile, flammable, colorless liquid. It is a psychoactive drug and one of the oldest recreational drugs. Best known as the type of alcohol found in alcoholic beverages, it is also used in thermometers, as a...
, biodieselBiodieselBiodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....
, biofuelBiofuelBiofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases...
enabling enzymes, etc.)
WilderHill Clean Energy Index
Tracks the 42 Clean Energy companies on US exchanges: specifically, businesses that stand to benefit substantially from a societal transition toward use of cleaner energy and conservation. Stocks and sector weightings within the WilderHill Clean Energy Index are based on their significance for clean energy, technological influence and relevance to preventing pollution in the first place. The index has six sub-sectors: renewable energy harvesting; power delivery and conservation; energy storage; cleaner fuels; energy conversion; and, greener utilities. Companies in the Clean Energy Index generally will not have their majority interests in the highest-carbon fuels: oilOil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
or coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
. Large companies with interests outside clean energy may be included if they are significant to this sector. There is a strong bias in favor of the pure-play companies in wind power, solar power, hydrogen and fuel cells, bio-fuels, and related fields; companies in relevant fields such as hydroelectric, geothermal, wave, tidal, waste heat recapture and others are considered with respect to carbon content, the impacts upon marine and terrestrial biodiversity
Biodiversity
Biodiversity is the degree of variation of life forms within a given ecosystem, biome, or an entire planet. Biodiversity is a measure of the health of ecosystems. Biodiversity is in part a function of climate. In terrestrial habitats, tropical regions are typically rich whereas polar regions...
, and degree to which they advance or reflect the clean energy sector. ECO components are evenly divided within a sector to assign weights.
External links
- ALTEXGlobal
- ALTEXAustralia
- Ardour Global Indexes
- Climate Change Index
- Credit Suisse
- DAXglobal Index
- ISE Global Wind Energy Index
- ISE Earth Wind and Fire Index
- Merrill Lynch Renewable Energy
- NASDAQ Clean Edge US Liquid Series Index
- RENIXX World
- S&P Global Clean Energy Index
- Wilderhill ECO
- Wilderhill NEX
- World Alternative Energy Index
- FTSE Environmental Markets Index Series