Cleantech Index
Objective
The Cleantech Index® was developed to capture the investment
potential associated with the substantial increase in
the economic value of clean technologies that will inevitably
be unlocked as the global population adjusts to the
linkage between economic development and resource sustainability.
The primary intent of CTIUS is to reflect, as best as
possible, the growth and commercial success of the world's
premier cleantech companies as demonstrated by the investment
returns of their shares, i.e., capital appreciation
and dividends.
Trading on the New York Stock Exchange (NYSE) since
January 15, 2009, Cleantech Index (CTIUS) was introduced
on the American Stock Exchange (ASE) in February, 2006
and represented the first index of its kind. The purpose
of CTIUS was to provide the first cost-effective way
to invest in the rapid growth of clean technology companies
(which are found in a variety of industrial sectors).
Within the Index, CTIUS companies fall into industrial
sectors corresponding with the Cleantech Group's definition
of cleantech
( http://cleantech.com/about/cleantechdefinition.cfm
)
Quality Screens
The index reflects the growth and commercial success
of the best world's leading cleantech companies as demonstrated
by the investment returns on their shares, i.e. capital
appreciation and dividends. The value of CTIUS to investors
is driven by five key factors:
Rigorous screening process for component companies
Weighting to ensure sector diversity that is representative
of the overall growth of cleantech products and services
A scalable index design to accommodate growth
Enables low-cost, low-effort, liquid investment vehicles
Offer a clearly differentiated product
CTIUS is designed not only to reflect the broad advance
of cleantech businesses, but also to maximize the risk-adjusted
total return to investors without sacrificing purity
by choosing the highest quality companies as possible
and achieving sufficient diversification to minimize
both company and sector risk.
Basic screening criteria for CTIUS components include
Market capitalization and liquidity
Purity, i.e. the percentage of their business that is
cleantech
Quality of company versus other potential peer companies
Sector redundancy
Download the Guide to the Cleantech Index
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