Factor Investing Strategy Briefing - Thursday 29th June 2023 - The Connaught, Mayfair. Please join us for our annual smart beta and factor investing event, featuring Goldman Sachs Asset Management, FlexShares, First Trust, MSCI and WisdomTree. Please register now if you would like to attend.

MV Index Solutions (MVIS), the indexing division of ETF issuer VanEck, has launched a new hard asset index providing exposure to North American companies involved in the midstream energy segment.

The index provides exposure to North American companies involved in the energy infrastructure sector.

The MVIS North America Energy Infrastructure Index covers companies and master limited partnerships (MLPs) that generate at least 50% of their revenue from the energy infrastructure segment.

This includes firms operating oil and gas pipelines, storage facilities, and other activities associated with transporting, storing, and gathering natural gas liquids, crude oil, or refined products.

Firms must have a market capitalization of least $150 million and $1m+ average daily trading value.

Should an existing constituent’s energy-infrastructure revenues drop below 50% it can remain in the index so long as it doesn’t drop below 25%, at which point it is expelled.

The index is weighted by market capitalization subject to a single stock cap of 8%. Reconstitution and rebalancing occur semi-annually and quarterly, respectively.

MVIS offers a diverse range of hard asset indices covering companies involved in unconventional oil production, oil services, and refining. The suite underlies several ETFs with collective assets under management of approximately $7.0 billion.

Thomas Kettner, Managing Director at MV Index Solutions, commented, “The MVIS North America Energy Infrastructure Index complements our range of indices in the oil sector. It also follows the high index quality standards which are applied to all MVIS Indices leading to pure-play exposure and liquid, investable, and well-diversified indices.”