NYSE Euronext, in partnership with Bloomberg New Energy Finance, is launching three “clean energy” stock indexes. The three indexes will be focused on performance of clean energy firms around the globe. The intent is to track public companies “most active in the world's historic shift to low-carbon energy."
The indexes cover:
- The Americas
- Europe, Middle East and Africa, and,
- Asia and Oceania
These are the first of a new family of clean energy indexes that the partners said they will start publishing over the next few months.
Later versions will include indexes tracking shares of solar power companies, shares of wind power companies, shares in “energy-smart” technology developers and shares in electric vehicle makers.
Each of the first three indexes includes between 125 and 325 component companies.
Firms in these indices have seen rapid growth in capital spending. NYSE Euronext and Bloomberg pegged global new investment in clean energy at $243 billion this year.
“The new indices provide a solid foundation for tracking the regional exposures by domicile for clean energy initiatives while accurately weighting each company’s economic exposure to their respective sector,” said George Patterson, managing director of European indices at NYSE Euronext Global Index Group.
"There are several clean energy equity indices already available to investors - including the NEX2 index we helped launch in 2006 - and they have done a good job in informing the market about the overall trends. However there is a need for more detail, particularly about the differing growth prospects for clean energy companies in regions of the world,’’ said Michael Liebreich, chief executive of Bloomberg New Energy Finance
The three NYSE-BNEF regional indexes that launched Monday are the NYSE-BNEF Asia Oceania Clean Energy Index (ticker NBASCEUP), NYSE-BNEF Europe, Middle East and Africa Clean Energy Index (ticker NBEACEUP, and NYSE-BNEF Americas Clean Energy Index (ticker NBAMCEUP).
In the first 10 months of 2011, the performances of the three new indexes varied widely, with the Asia-Oceania index down 33%, while the Americas and EMEA indices declined, respectively, by 17% and 14%.
-- This article first appeared on Money Management Executive.
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