Indxx launches US infrastructure development index

Mar 9th, 2017 | By | Category: ETF and Index News

Indxx has launched the Indxx US Infrastructure Development Index, tracking the performance of companies that provide exposure to infrastructure development in the United States. The index has been licensed to New York-based ETF provider Global X Funds as the underlying benchmark for the Global X US Infrastructure Development ETF (BATS: PAVE).

Indxx launches US infrastructure development index

The Indxx US Infrastructure Development Index has been licensed to Global X Funds to underlie the Global X US Infrastructure Development ETF (BATS: PAVE).

Rahul Sen Sharma, Partner at Indxx, commented: “Indxx is excited to have once again worked with our partners at Global X to identify a timely and unique theme and effectively target it via an index-based approach. Thematic indices like these involve intensive research into first properly identifying the best way to target the theme, and then thoroughly analyzing potential companies to ensure they qualify for inclusion according to a quantitative, rules-based selection process. We are proud to have utilized our custom research and development capabilities to add to our growing list of indices in this space.”

To be eligible for inclusion in the index, companies must have their primary listing in the US, a minimum market capitalization of $300 million and a minimum average daily turnover for the last six months greater than or equal to $1m. All constituents must have a minimum free float equivalent to 10% of shares outstanding.

The index screens for companies primarily involved in one of four infrastructure themes: the construction and engineering of infrastructure projects; the production of infrastructure raw materials, composites and products; producers/distributors of heavy construction equipment; and companies engaged in the transportation of infrastructure materials. Additionally, firms must derive at least 50% of their revenue from within the US.

There are currently 88 securities in the index which are weighted by market capitalization with a single issuer cap of 3%.

Using back-tested data, the index rose 9.8% per annum from 31 January 2011 to 1 March 2017.

Indxx US Infrastructure Development

Source: Indxx.

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