Overview
The PPA Smart City Index tracks the price movements in shares of companies engaged in the following activities defining the concept of a smart city: smart transportation and mobility, clean and sustainable energy, waste management and environmental protection, connectivity, digitalization of government, sharing economy, smart buildings, and integrated social and emergency services. The Index seeks to provide exposure to companies with significant source of revenue coming from one of the above areas. The Index seeks to offer “pure play” exposure to take advantage of this growing market opportunity.
Investment Case
Smart City is the modern day city-state, fully self-contained with renewable energy, technology-driven and interconnected transportation, infrastructure, communications, and public services. Economic indicators show that cities have had to scale back investment during the financial crisis of 2007-09 to compensate for the shortfall in revenues. Many have reverted to maintenance and moved away from innovation. As urban development continues to evolve rapidly, the challenges the cities face today including inefficiencies, social exclusion, and pollution, will only become more pronounced. Today, the demand for efficiency and sustainability that these challenges create drives technology infrastructure build-up and data-driven solutions that encompass multiple themes into this single megatrend.
Index Construction & Methodology
| Index universe selection | US listed or sponsored ADR |
| Inclusion & Liquidity Requirement | Min $100M market cap, $5 share price and 50K share 3-month trading volume |
| Currency | USD |
| Total Holdings | 30 |
| Weighting | Modified, capped, market cap |
| Rebalance | Quarterly |
Constituents – Top Components
| Component | Sector | Weighting |
|---|---|---|
| Tesla (TSLA) | Transportation | 8.5% |
| American Tower (AMT) | Networking & Communications Devices | 7.7% |
| Verizon (VZ) | Telecom & Data Services | 7.5% |
| Cisco Systems (CSCO) | Networking & Communications Devices | 5.9% |
| Alphabet (GOOG) | Telecom & Data Services | 5.9% |
Disclosure: The information provided on this page is for illustrative purposes only and is not intended to serve as investment advice. The information provided is as of particular time (06/15/2018) and subject to change at any time without notice. For more information, please contact PPA Indexes.