FTSE expands environmental markets series with launch of FTSE ET100 Index

May 1st, 2013 | By | Category: ETF and Index News

FTSE Group, a leading global index provider, has launched the FTSE ET100 Index, an index measuring the performance of companies whose core business is in the development and operation of environmental technologies.

FTSE expands environmental markets series with launch of FTSE ET100 Index

The new FTSE ET100 Index comprises the 100 largest pure-play environmental technology companies globally.

There are now 21 indices in the associated FTSE Environmental Markets Series including the Environmental Technology (ET) indices.

To qualify for the FTSE ET100 Index, which comprises the 100 largest pure-play environmental technology companies globally, companies must derive at least 50% of their business from environmental markets.  These include renewable & alternative energy, energy efficiency, water infrastructure & technology, waste management & technologies, pollution control and environmental support services.

Major holdings include Pentair, a manufacturer of fluid and thermal management equipment; BorgWarner, a manufacturer of powertrain technologies that improve fuel economy and emissions;  Stericycle, a specialist in biohazard waste disposal services; Novozymes, a biotech company with a strong focus on enzyme production; and Johnson Matthey, a manufacturer of fuel cell and emission control technologies.

A number of investment products are already linked to indices from within this suite including exchange-traded funds (ETFs), such as the Euronext Paris-listed EasyETF FTSE Environmental Opportunities 100 from BNP Paribas, as well as conventional index-trackers and structured products. The indices are also used as performance benchmarks for a range of actively managed funds.

The FTSE ET50 Index, the sister index of the FTSE ET100, was first launched by Impax Asset Management in 1999,  making it the longest-running environmental technology index in the world.  FTSE’s partnership with Impax began in 2007.

David Harris, Director, FTSE, said:  “We have seen huge changes in the shape of the market: in the recent past it was dominated by a small number of large renewable energy companies.  Today it is more diversified with the Energy Efficiency (31.1%) and Water Infrastructure and Technology (21.7%) Sectors representing the largest sector weights of the index.”

Tags: , ,

Leave a Comment

More in ETF and Index News
MSCI launches factor ESG index series
ETF AUM linked to MSCI equity indices passes $700bn milestone

MSCI has announced that assets under management in equity ETFs linked to its indices has reached an all-time high of $707 billion, as...

AUM in inverse & leveraged ETFs reaching record highs, finds ETFGI
Inverse & leveraged ETF AUM reaching record highs, finds ETFGI

Assets invested in inverse and leveraged ETFs listed globally increased 14.1% in the first nine months of 2017 to reach a new record...