Methodology
Starting Universe
The Nasdaq Sprott Energy Transition Materials Select Index (NSETM) follows a published, rules-based methodology that seeks to invest in holdings that have the following characteristics, among others:
- Company has a significant part of its business operations related to the energy transition materials industry (I.e. producers, developers, explorers, recyclers, royalty companies, etc.)
- Must have a company-level market capitalization of at least $100 million and must maintain a minimum market capitalization of $50 million.
- Must have a three-month average daily traded value of at least $500 thousand and must maintain a three-month average daily traded volume of $250 thousand.
- Company is listed on a stock exchange or regulated market
Screening
Screen for potential companies third party databases, competitive analysis, and in-house research.
ESG Exclusion Screens; violate UN Global Compact Principles, Sustainalytics Controversy Rating of five (5), Involvement in certain degrees in Controversial Weapons, Oil & Gas, Oil Sands, Thermal Coal and Pesticides
Rebalance
The index is adjusted semi-annually on the third Friday of June and December each year.
To view the Methodology
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