- An index with global scope that considers assets
in both the developed and developing world organized to capture the
economic value of the wind power complex.
- The index has two segments that in total hold 41constituents distributed across 12 countries.
- Holdings are concentrated for the time being in the supply chain (generation capacity) area of the value chain as the industry is building installations and networks.
- For the sake of environmental purity (and carbon market optionality), the Index will prefer wind farm operators and renewable energy generators over traditional utilities with wind portfolios and supply chain firms in the future.
- ETFx applies an equal-weighted calculation methodology to the index.
ETFx Wind Power Index Methodology
- Lower correlation to the business cycle during the rapid expansion
of wind capacity worldwide
- Lower volatility in businesses due to social/economic importance
of electricity
- Excellent inflation diversifier (wind is not a priced “fuel”)
because active generators avoid rising hydrocarbon prices
- Opportunity for capital appreciation as clean energy becomes more essential to economic and environmental wellness