Indices for Solar, Wind and Energy Smart Technologies offer fresh ways for investors and ETF providers to get exposure to sectors of the rapidly-growing clean energy industry
New York and London, 4 April 2012 - Today, NYSE Euronext and research company Bloomberg
indices. The new indices will allow investors to track in unprecedented detail the quoted companies
most involved in the world's historic shift to low-carbon energy.
The three new sector indices cover solar energy, wind power and energy smart technologies (EST).
The solar index covers the entire value chain from polysilicon makers to photovoltaic project
developers, the wind index everything from turbine component makers to wind farm builders and
operators and the EST index everything from battery makers to suppliers of demand response
systems for the electricity network. Each index is based on a basket of between 70 and 200
companies, quoted on different stock markets around the world, with a minimum threshold exposure
to the relevant renewable energy or energy smart technology sectors.
The sectoral indices launched today are designed to act as a complement to the three regional
clean energy indices launched late last year by NYSE Euronext and BNEF.
"The new indices accurately weight each company's economic exposure to its sector and so
provide a more granular way of tracking changing valuations in this fast-moving industry," said
George Patterson, managing director of European indices at NYSE Euronext Global Index Group,
"NYSE Euronext has been involved in developing and calculating clean energy equity index
products for the better part of a decade. Together with Bloomberg NEF we hope to see ETF
providers using the solar, wind and EST indices as their basis for new products for investors that
want a pooled, rather than stock-specific exposure, to these sectors."
Michael Liebreich, chief executive of Bloomberg New Energy Finance, said: "These indices draw on
the deep research our analysts have done over many years into value chains of these complex
sectors. Many stock market investors may be somewhat familiar with the solar and wind industries,
but they may not appreciate the wide range of companies involved, from material and component
makers, to sub-assembly and final equipment manufacturers, from advisors to project developers.
Trends become clearer when you look at all these activities.
"As for EST, this covers a complex set of technologies that will be absolutely key to the world's chances of reducing emissions in the next 40 years, and we believe investors will benefit by
understanding the different pieces - including smart grid, building and industrial efficiency, electric
vehicles and power storage. Our analysts helped to define these sectors over the past five years,
and we and NYSE Euronext strongly believe these indices will help to improve the market's
knowledge of them."
Bloomberg New Energy Finance decided to partner with NYSE Euronext, to benefit from the latter's
expertise in indices and exchange-traded funds. "We look forward to working together on indices
that will help to improve the market's knowledge of these sectors," Liebreich said.
The three NYSE-BNEF sector indices being launched today will be known officially as NYSE-BNEF
Global Wind Energy Index, NYSE-BNEF Global Solar Energy Index and NYSE-BNEF Global
Energy Smart Technologies Index.
The three new indices are weighted according to the individual company's exposure to the relevant
sector, as determined by Bloomberg New Energy Finance's expert teams of sector-focused
analysts. Constituent firms are identified by their position in each sector's value chain, giving
investors unprecedented visibility of intra-sector performance. Pure-play companies – those whose
activities are focused entirely on the sector – are weighted at their full market capitalizations, while
companies active only partly in clean energy, as well as those which are further back in the supply
chain, are given a reduced weighting.
The indices draw on Bloomberg New Energy Finance's database of organizations involved in clean
energy and related sectors. This database has unique depth, incorporating the clean energy
exposure of each company, ongoing expert analysis of sector definitions and boundaries, constancy
of data upkeep and a true global approach to tracking all equities regardless of which exchange
they are on. Bloomberg New Energy Finance analysts are presently tracking well over 1,000 quoted
organizations with a moderate (10% or greater) percentage of their activity in clean energy,
excluding those traded exclusively on OTC markets.
The table below shows that in the first three months of 2012, the EST Index has outperformed the
other two. Figure 1 shows that the solar and wind indices outperformed the EST index dramatically
until late 2007, but that since then they have under-performed it.
ABOUT NYSE EURONEXT
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded
products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets – the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca – represent onethird
of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world's second-largest derivatives business by value of
trading. The company offers comprehensive commercial technology, connectivity and market data products and services
through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the Fortune 500.
For more information, please visit: http://www.nyx.com.