The S-Network Carbon Footprint Index (TICKER: SNCDPX) is designed to include companies with small carbon footprints. SNCDPX selects the 100 lowest-carbon-emitting companies in the S-Network US Large-Cap 500 Index (SN500) as of the last trading day in May. The S-Network Carbon Footprint Index embodies certain key characteristics that distinguish it from other indexes, including the following:
The S-Network US Large-Cap 500 Index (SN500) serves as the universe for SNCDPX. Constituents of SNCDPX must pass all screens required for the fully investable, duplicate-free benchmark index.
The S-Network Carbon Footprint Index weights all stocks equally. Sector weights are capped at 25%. This methodology avoids momentum bias and domination by mega-cap stocks, while maintaining high correlation to the relevant benchmark.
Constituents of the S-Network Carbon Footprint Index are selected based on their low carbon emissions relative to scales of revenue and personnel.
The S-Network Carbon Footprint Index depends on a clearly defined rules-based methodology, which is overseen by an impartial Index Committee. No discretion is exercised in compiling the indexes and a pre-defined screening protocol assures a consistent, transparent and arms-length compilation process.