NASDAQ Launches Indexes to Track Green Economy

NASDAQ Launches Indexes to Track Green Economy

The NASDAQ OMX Group made it easier this week for investors to track the green economy with the unveiling of a new family of indexes.

The company, which owns the NASDAQ and bills itself as the world's largest exchange company, unveiled the first four in a family of indexes tracking companies operating in 13 sectors, including energy efficiency, renewable energy and healthy living. NASDAQ OMX said it will launch more green economy indexes in the coming months.

"The NASDAQ OMX Green Economy Index provides a global investment benchmark for institutional and retail investors," John Jacobs, executive vice president of NASDAQ OMX Global Index Group, said in a statement. "Amid the transition from a fossil based economy to the sustainable nature of the green economy, NASDAQ OMX continues to play a leading role in benchmarking the companies and sectors that are engaged in developing environmentally enhancing goods and services."

The NASDAQ OMX Green Economy Global Index covers 13 sectors. Future indexes will track individual sectors and regions. The four versions launched this week, each with a base value of 1000.00, include Price Return (QGREEN), Total Return (QGREENX), a Capped Price Return (QGREENCP4), and a Capped Total Return (QGREENCP4X).

The sectors tracked are:

• Advanced materials
• Bio/clean fuels
• Energy efficiency
• Financial
• Green building
• Healthy living
• Lighting
• Natural resources
• Pollution mitigation
• Recycling
• Renewable energy generation
• Transport
• Water

Companies included in the OMX Green Economy Index include Autodesk, China Sunenergy, Chipotle Mexican Grill, Cisco, Green Mountain Coffee Roasters, Interface, Johnson Controls, Nextera Energy (formerly FPL), Owens Corning, Tesla Motors, VMWare and Waste Management.

The NASDAQ OMX Green Economy Global Index isn't the first to track some aspect of the green business. FTSE, Dow Jones, HSBC and Markit also offer green-related indexes, such as those tracking companies with strong sustainability reporting practices, robust carbon management strategies, and overall environmental performance.