Index Methodology

MAC Global Solar Energy Index – Index Methodology*

 

S&P Dow Jones Indices (S&P DJI) is the benchmark administrator for the MAC Global Solar Energy Index and manages the Index. Click here for MAC Solar info at S&P DJI's website.

These key MAC Solar Index documents are available only at S&P DJI’s website:

 

Methodology Summary

Please note that the official Methodology is contained on the www.spglobal.com website and takes precedence over the following summary, which provides only a limited and incomplete description of the Methodology and must not be relied upon as the official version of the Methodology.

Methodology key items:

  • The MAC Global Solar Energy Index seeks to track the global solar stock sector.
  • Constituent stocks must be listed on a primary exchange in one of the specified countries/markets.
  • Rules-based passive index (no stock picking).
  • Quarterly index review takes effect after the close on the third Friday of March, June, September, and December.
  • Liquidity minimum to add a stock: US$ 250 million of float-adjusted market cap and $750,000 in 3-month average daily trading value. Liquidity minimum for the continued inclusion of a constituent in the Index at the quarterly Index rebalance is US$ 125 million of float-adjusted market capitalization and a 3-month average daily trading value of $375,000.
  • Index has a decade-plus history with inception on 31-March-2008. Index is calculated in USD. Ticker symbol is SUNIDX.

 

Index Governance

 

  • S&P Dow Jones Indices (S&P DJI) is the benchmark administrator of the MAC Solar Index.* A 5-Member S&P DJI committee governs the MAC Solar Index, making all decisions, in its sole discretion, regarding Index constituent selection, weights, corporate actions, methodology, and all other factors.

 

Solar Stock focus

 

  • "80% Solar Investment Policy" – At least 80% of the Index weight (actual amount is typically higher) is required to be in stocks with over 50% solar revenue. Other stock selection policies apply (see official Methodology document).
  • Exposure Score 1.0 for pure-play solar stocks (solar revenue above 2/3); Exposure Score of 0.5 for medium-play stocks (1/3 to 2/3 solar revenue) reduces stock’s weight in the index. No stocks below 1/3 solar revenue
  • Index constituents are selected each quarter based on an annually-reconstituted Solar Stock Universe List (see official Methodology document for details).

 

Environmental and Other ESG Factors

 

The MAC Global Solar Energy Index is an Environmental Index that takes into account other ESG (Environmental, Social, Governance) factors as well (see official Index Methodology for details).

The MAC Solar Index is an Environmental index because the Index methodology requires that at least 80% of the combined weight of the index is represented by companies that derive at least 50% of their revenue from solar business activities, a key environmental and climate change solution.

Also, the MAC Solar Index excludes a stock based on certain ESG screens if:

  1. S&P Trucost data, as of the annual reconstitution of the Solar Stock Universe List, shows a company has any involvement with (a) fossil fuel extraction (crude oil, coal, or natural gas), or (b) electricity generation with coal, petroleum (oil), or nuclear, or
  2. the S&P Business Involvement database, at the regular quarterly Index review, shows that a company has any revenue from certain excluded business involvement categories such as tobacco, weapons, certain fossil fuel activities, and others (see the Index Methodology for the excluded business categories), or
  3. the company either has no S&P Governance & Economic Score, or its score is below 5.00, as of the regular quarterly Index review. It should be noted that the S&P Governance & Economic Score takes into account ESG controversies as determined by the S&P Global Media & Stakeholder Analysis.

For an explanation of how ESG factors are reflected in the MAC Solar Index, please see the “EU Low Carbon Benchmark Regulation Disclosure Report.”

More information on the relevant S&P ESG databases is available at:

 

Modified Market Cap Weighting

 

  • Stock weights are reassigned quarterly at the Index rebalance by calculating the regular float-adjusted market-cap weighting and then using a weighting-gap process to pull weights together proportionally until stocks with a weight over 4.5% do not exceed a combined 45% of the total Index weight. The result is that the weights are as close to regular market-cap weighting as possible while still meeting various diversification requirements.
  • Also, the weight is capped at 10% for individual stocks at rebalance, although that weight can drift above 10% after the quarterly rebalance due to an individual stock’s relative strength. Other liquidity and weighting policies apply (see official Methodology document).
  • See current MAC Solar Index constituent weights at the Stocks in the Index page.

*Copyright and Disclaimers

 

*The MAC Global Solar Energy Index (SUNIDX) is licensed as the tracking index for the U.S.-based Invesco Solar ETF (NYSE ARCA: TAN) and the European-based Invesco Solar UCITS ETF (London: ISUN LN & RAYS LN) (Xetra: SOLR GY) (Borsa Italiana: SOLR IM) (Swiss: SOLR SW).  Index performance does not reflect transaction costs, fees or expenses of the ETF. This material is provided solely by MAC Global Solar Energy Index, not by Invesco nor S&P Dow Jones Indices, neither of which bear any responsibility for the content or use of this material.

 

Copyright. All rights reserved. MAC Solar Index. www.macsolarindex.com. The information contained herein is not guaranteed as to its accuracy or completeness.  No express or implied warranties nor guarantees are made. No responsibility is assumed for the use of this material and those individuals acting on this information are responsible for their own actions. Any opinions expressed herein are subject to change without notice. Nothing contained herein should be construed as an offer to buy or sell, or as a solicitation to buy or sell, any securities or derivative instruments. Security and derivatives trading may not be suitable for all recipients of this information. Please consult with your investment advisor before investing.

 

The MAC Global Solar Energy Index (the “Index”) is the property of MAC Indexing, LLC.  MAC Indexing LLC will not be liable for any errors or omissions in administering, calculating, or maintaining the Index.  MAC INDEXING and MAC GLOBAL SOLAR ENERGY INDEX are trademarks of MAC Indexing, LLC.  Any product based on the Index is not sponsored, endorsed, sold or promoted by MAC Indexing, LLC.  MAC Indexing, LLC does not make any representation or warranty, express or implied, to the owners of any Product based on the Index, or any member of the public, regarding the advisability of investing in securities generally or in the Product particularly or the ability of the Index to track general market performance.  MAC Indexing LLC’s only relationship to a Product owner is the licensing of the Index, which is determined, composed and calculated by MAC Indexing LLC without regard to the Product owner or the Product.  MAC Indexing, LLC has no obligation or liability in connection with the administration, marketing or trading of any Product based on the Index.  MAC Indexing, LLC is not an investment advisor.  Inclusion of a security within the Index is not a recommendation by MAC Indexing, LLC to buy, sell, or hold such security, nor is it investment advice.

 

MAC INDEXING, LLC DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION WITH RESPECT THERETO, INCLUDING, ORAL, WRITTEN, OR ELECTRONIC COMMUNICATIONS.  MAC INDEXING, LLC SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN.  MAC INDEXING, LLC MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY OWNERS OF ANY PRODUCTS BASED ON THE INDEX, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL MAC INDEXING, LLC BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.

 

S&P Dow Jones Indices Trademark and Disclaimer Notice

 

The "MAC Global Solar Energy Index" (the "Index") is the property of MAC Indexing, LLC, which has contracted with S&P DJI Netherlands B.V. (a subsidiary of S&P Dow Jones Indices LLC) to calculate and administer the Index.  The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors, including Standard & Poor’s Financial Services LLC and Dow Jones Trademark Holdings LLC (collectively, “S&P Dow Jones Indices”).  S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index.  “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by MAC Indexing, LLC.  S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“SPFS”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”).

 

Products based on the Index are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices.  S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly or the ability of the Index to track general market performance.  S&P Dow Jones Indices’ only relationship to MAC Indexing LLC with respect to the Index is the licensing of the certain S&P data, certain trademarks, service marks and trade names of S&P Dow Jones Indices, and the provision of the calculation services related to the Index.  S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices and amount of the Product or the timing of the issuance or sale of the Product or in the determination or calculation of the equation by which the Product may be converted into cash or other redemption mechanics.  S&P Dow Jones has no obligation or liability in connection with the administration, marketing or trading of the Product.  S&P Dow Jones Indices LLC is not an investment advisor.  Inclusion of a security within the Index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it investment advice.

 

S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION WITH RESPECT THERETO, INCLUDING, ORAL, WRITTEN, OR ELECTRONIC COMMUNICATIONS.  S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN.  S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY MAC INDEXING, LLC, THE OWNERS OF ANY PRODUCTS TRACKING THE INDEX, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.