Introducing: BITA Green Energy Giants Index
Clean energy is the indisputable future of energy, as people seek more environmentally friendly solutions to solve their energy needs. This is a trend that is especially relevant in the United States, now that the Biden administration has rejoined the Paris Climate Accord. Moreover, other OECD countries are looking to reduce CO2 emissions and address climate change. The United States alone plans to invest an estimated $2 trillion into the clean energy sector. Furthermore, the United States is expecting to fully decarbonize the power sector by 2035 in order to achieve a larger goal of net-zero carbon emissions by 2050.
Overall, the renewable energy sector is expected to reach a global market of $1,500 billion by 2025, with a CAGR of 6.10% from 2018 to 2025, and is forecasted to grow even more rapidly as adoption increases in the coming years. This backdrop, along with the global pandemic speeding up several trends in the space, provides an immense opportunity for investors to target clean energy, which is currently one of the most sought-after sectors.
At BITA, we have been following clean energy trends closely, as ESG is one of the biggest topics in the passive investing space. With this in mind, we have designed an index that provides wider exposure and returns for investors: the BITA Green Energy Giants Index (BNGEGI).
Index Overview
The BITA Green Energy Giants Index aims to track the Gross Total Return of companies that derive over 50.00% of their revenue from the development, production, and commercialization of clean energy technology and services, and have their primary listing at recognized US and Canada-based exchanges. The index constituents are weighted based on free-float market capitalization and rebalanced on a quarterly basis.
Since the beginning of 2020 and until mid-February, the index has outperformed the SPY by 255.60%.
As of February 12th, the top ten constituents of the index are:
About BITA
At BITA, we use a transparent, straightforward, and consistent construction process that ensures true exposure to megatrends. Moreover, our state-of-the-art index development software allows us to be flexible in designing and implementing innovative passive solutions for our clients.
To learn more about BITA’s real-time data products, please visit our website at http://www.bitadata.com or contact us at info@bitadata.com.