At MarketVector IndexesTM ("MarketVector"), we understand that company classifications are complex, fluid, and dynamic. Classifications, like GICS can work well for one set of companies but may not be relevant for another, depending on the specific investment use case. Trying to capture evolving disruptive themes requires a precise approach for a moving target. MarketVector uses a pure-play approach to indexing. Our pure-play approach to indexing captures growth where it’s going, not just where it’s been, targeting value with precision, even as the theme evolves. We select companies that derive 50% or more revenue from the target theme, market or country, and we update each index regularly to ensure it stays that way.
A clear example of our pure-play approach can be seen in our BlueStar® Electric Vehicle Industry Index (BEVNTR). BEVNTR tracks the performance of the largest and most liquid companies in the global electric vehicle industry. This is a modified market cap-weighted index, and only includes companies that generate at least 50% of their revenue from electric vehicles, electric vehicle parts, charging technology, or related equipment. BEVNTR includes global automotive cars specializing in e-vehicles such as Tesla (TSLA) and NIO (NIO), as well as battery companies like SES AI (SES) and charging companies like Blink Charging (BLNK). Pure plays are an example of a transformative approach towards capturing an evolving theme over time, allowing investor to target disruptive themes with precision.
You can learn more about pure-play with our latest video series here.
For more information on our family of indexes, visit: www.marketvector.com
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