green technology (also greentech): Technology whose use is intended to mitigate or reverse the effects of human activity on the environment. — Oxford English Dictionary
Combining technology with sustainability provides an opportunity to invest in companies that that are reducing or eliminating environmental impacts and, in doing so, improve the quality of life. Greentech covers a multitude of different technologies and products, so defining the industry is not straightforward. At MVIS, we recognize that building indices to capture targeted themes goes beyond traditional sector and industry definitions as well as standard market-cap weighting schemes.
The MVIS Low Carbon Energy Index (ticker: MVSMOG) provides exposure to companies that derive 50% of revenue, operating activity, or energy generation capacity from renewable sources of energy, the development of related technologies, or sustainable building products that reduce energy consumption. Renewable sources of energy include: wind, solar, geothermal, hydro, hydrogen, waste, and biofuels. In addition, the index may include companies that derive 50% of revenue or operating activity from electric vehicles and related technologies, air purification, smart grid, fuel cells and/or lithium-ion or other advanced battery technologies.
MVSMOG is part of the MVIS range of environmentally friendly index concepts such as the MVIS Global Hydrogen Economy Index, the BlueStar Solar Energy Industry Index, BlueStar Electric Vehicles Index and the BlueStar Global GreenTech Index. These indices provide investors with wider choices between a targeted exposure, such as solar, and broader greentech exposures.
| Top Holdings | MVIS Low Carbon Energy Index (ticker: MVSMOG) | |
|---|---|---|
| Component | Country | Weight |
| NEXTERA ENERGY INC | US | 8.22% |
| TESLA INC | US | 8.01% |
| ENEL SPA | IT | 6.67% |
| IBERDROLA SA | ES | 5.89% |
| SAMSUNG SDI CO LTD | KR | 5.37% |
| NIO INC - ADR | KY | 5.16% |
| VESTAS WIND SYSTEMS A/S | DK | 5.16% |
Joy Yang is Global Head of Index Product Management at MV Index Solutions (MVIS). She is responsible for managing MVIS products and services to accelerate innovation in financial index design and adoption. Joy brings more than 25 years of investment experience to MVIS, having led teams delivering index and quantitative-active investment solutions at Arabesque Asset Management, Dimensional Fund Advisors, Vanguard, Aberdeen Standard Investments, AXA Rosenberg and Blackrock. Joy has an MBA from the University of Chicago Booth School of Business, and a BS in Electrical Engineering from Cooper Union’s Albert Nerken School of Engineering.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.