Green IPO Index Construction Summary
The Renaissance Green IPO Index is designed to capture the performance of newly public companies whose products and services offer solutions to environmental problems. Green enterprises, such as solar companies and biofuel producers, frequently manifest themselves first through the IPO market, enabling the Renaissance Green IPO Index, a subset of the Renaissance IPO Index®, to capture the earliest performance of these new green business ideas.
The following "green sectors" are included in the index:
- alternative energy
- recycling
- conservation
- clean transport
- energy efficiency
- green-enabling technologies
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| Weighting | Float-adjusted market capitalization |
| Number of Constituents | Variable based upon green IPO activity |
| Constituent Additions | New green IPOs are added upon the close of the first day of trading. |
| Constituent Deletions | Members are removed on the second anniversary of their IPO date, resulting in an approximate holding period of 500 days. |
| Minimum Float Capitalization | $50 million float-adjusted market capitalization |
| Rebalance Frequency | Index constituents are reviewed for eligibility based upon size and liquidity on a quarterly basis. The number of shares and float weights are also updated quarterly. |
| Significant Events | Shares are adjusted weekly for corporate actions that impact a constituent's float shares by more than 10%. |