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% |
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