Index Methodology

MAC Global Solar Energy Index – Index Methodology*

 

S&P Dow Jones Indices (S&P DJI) is the benchmark administrator for the MAC Global Solar Energy Index and manages the Index. Click here for MAC Solar info at S&P DJI's website.

These key MAC Solar Index documents are available only at S&P DJI’s website:

 

Methodology Summary

Please note that the official Methodology is contained on the www.spglobal.com website and takes precedence over the following summary, which provides only a limited and incomplete description of the Methodology and must not be relied upon as the official version of the Methodology.

Methodology key items:

  • The MAC Global Solar Energy Index seeks to track the global solar stock sector.
  • Constituent stocks must be listed on a primary exchange in one of the specified countries/markets.
  • Rules-based passive index (no stock picking).
  • Quarterly index review takes effect after the close on the third Friday of March, June, September, and December.
  • Liquidity minimum to add a stock: US$ 250 million of float-adjusted market cap and $750,000 in 3-month average daily trading value. Liquidity minimum for the continued inclusion of a constituent in the Index at the quarterly Index rebalance is US$ 125 million of float-adjusted market capitalization and a 3-month average daily trading value of $375,000.
  • Index has a decade-plus history with inception on 31-March-2008. Index is calculated in USD. Ticker symbol is SUNIDX.

 

Index Governance

 

  • S&P Dow Jones Indices (S&P DJI) is the benchmark administrator of the MAC Solar Index.* A 5-Member S&P DJI committee governs the MAC Solar Index, making all decisions, in its sole discretion, regarding Index constituent selection, weights, corporate actions, methodology, and all other factors.

 

Solar Stock focus

 

  • "80% Solar Investment Policy" – At least 80% of the Index weight (actual amount is typically higher) is required to be in stocks with over 50% solar revenue. Other stock selection policies apply (see official Methodology document).
  • Exposure Score 1.0 for pure-play solar stocks (solar revenue above 2/3); Exposure Score of 0.5 for medium-play stocks (1/3 to 2/3 solar revenue) reduces stock’s weight in the index. No stocks below 1/3 solar revenue
  • Index constituents are selected each quarter based on an annually-reconstituted Solar Stock Universe List (see official Methodology document for details).

 

Environmental and Other ESG Factors

 

The MAC Global Solar Energy Index is an Environmental Index that takes into account other ESG (Environmental, Social, Governance) factors as well (see official Index Methodology for details).

The MAC Solar Index is an Environmental index because the Index methodology requires that at least 80% of the combined weight of the index is represented by companies that derive at least 50% of their revenue from solar business activities, a key environmental and climate change solution.

Also, the MAC Solar Index excludes a stock based on certain ESG screens if:

  1. S&P Trucost data, as of the annual reconstitution of the Solar Stock Universe List, shows a company has any involvement with (a) fossil fuel extraction (crude oil, coal, or natural gas), or (b) any revenue from the generation of electricity with coal, petroleum (oil), or nuclear, or more than 50% of combined revenue from the generation of electricity using natural gas, landfill gas, and biomass.
  2. the S&P Business Involvement database, at the regular quarterly Index review, shows that a company has any revenue from certain excluded business involvement categories such as tobacco, weapons, certain fossil fuel activities, and others (see the Index Methodology for the excluded business categories),
  3. the company either has no S&P Governance & Economic Score, or its score is below 5.00, as of the regular quarterly Index review, or
  4. the S&P MSA Controversies database, as of the regular quarterly Index review, shows a company has been assigned a Controversy deemed as “Severe” within the previous 18 months.

For an explanation of how ESG factors are reflected in the MAC Solar Index, please see the “EU Low Carbon Benchmark Regulation Disclosure Report.”

More information on the relevant S&P ESG databases is available at:

 

Modified Market Cap Weighting

 

  • Stock weights are reassigned quarterly at the Index rebalance by calculating the regular float-adjusted market-cap weighting and then using a weighting-gap process to pull weights together proportionally until stocks with a weight over 4.5% do not exceed a combined 45% of the total Index weight. The result is that the weights are as close to regular market-cap weighting as possible while still meeting various diversification requirements.
  • Also, the weight is capped at 10% for individual stocks at rebalance, although that weight can drift above 10% after the quarterly rebalance due to an individual stock’s relative strength. Other liquidity and weighting policies apply (see official Methodology document).
  • See current MAC Solar Index constituent weights at the Stocks in the Index page.

*Copyright and Disclaimers

 

*The MAC Global Solar Energy Index (SUNIDX) is licensed as the tracking index for the U.S.-based Invesco Solar ETF (NYSE ARCA: TAN) and the European-based Invesco Solar UCITS ETF (London: ISUN LN & RAYS LN) (Xetra: SOLR GY) (Borsa Italiana: SOLR IM) (Swiss: SOLR SW).  Index performance does not reflect transaction costs, fees or expenses of the ETF. This material is provided solely by MAC Global Solar Energy Index, not by Invesco nor S&P Dow Jones Indices, neither of which bear any responsibility for the content or use of this material.

 

Copyright. All rights reserved. MAC Solar Index. www.macsolarindex.com. The information contained herein is not guaranteed as to its accuracy or completeness.  No express or implied warranties nor guarantees are made. No responsibility is assumed for the use of this material and those individuals acting on this information are responsible for their own actions. Any opinions expressed herein are subject to change without notice. Nothing contained herein should be construed as an offer to buy or sell, or as a solicitation to buy or sell, any securities or derivative instruments. Security and derivatives trading may not be suitable for all recipients of this information. Please consult with your investment advisor before investing.

 

The MAC Global Solar Energy Index (the “Index”) is the property of MAC Indexing, LLC.  MAC Indexing LLC will not be liable for any errors or omissions in administering, calculating, or maintaining the Index.  MAC INDEXING and MAC GLOBAL SOLAR ENERGY INDEX are trademarks of MAC Indexing, LLC.  Any product based on the Index is not sponsored, endorsed, sold or promoted by MAC Indexing, LLC.  MAC Indexing, LLC does not make any representation or warranty, express or implied, to the owners of any Product based on the Index, or any member of the public, regarding the advisability of investing in securities generally or in the Product particularly or the ability of the Index to track general market performance.  MAC Indexing LLC’s only relationship to a Product owner is the licensing of the Index, which is determined, composed and calculated by MAC Indexing LLC without regard to the Product owner or the Product.  MAC Indexing, LLC has no obligation or liability in connection with the administration, marketing or trading of any Product based on the Index.  MAC Indexing, LLC is not an investment advisor.  Inclusion of a security within the Index is not a recommendation by MAC Indexing, LLC to buy, sell, or hold such security, nor is it investment advice.

 

MAC INDEXING, LLC DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION WITH RESPECT THERETO, INCLUDING, ORAL, WRITTEN, OR ELECTRONIC COMMUNICATIONS.  MAC INDEXING, LLC SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN.  MAC INDEXING, LLC MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY OWNERS OF ANY PRODUCTS BASED ON THE INDEX, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL MAC INDEXING, LLC BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.

 

MAC Solar Index – Index Data Distribution Terms & Conditions

 

Last updated: May 22, 20216

 

1. Scope and Acceptance

These Terms & Conditions (“Terms”) constitutes a binding agreement between MAC Indexing LLC (“us”, “we”, “our”) and the person (“you or “your”) accessing or using any Index Data related to the MAC Global Solar Energy Index (SUNIDX) (“Index”), including Index levels, constituents, weightings, pro forma files, and related information (collectively, “Index Data”) owned by MAC Indexing and administered by S&P Dow Jones Indices LLC (“SPDJI”). If you accept or agree to these Terms on behalf of a company or other legal entity, you represent, warrant, and covenant that you have the authority to bind that company or other legal entity to these Terms and, in such event, “you” and “your” will refer and apply to that company or other legal entity.

These Terms apply to all Index Data made available by MAC Indexing, including via systems operated by S&P Dow Jones Indices. In the event of any conflict between the provisions of these Terms and the terms of any relevant agreements (including any terms of use, end user license, or similar agreement) between you and S&P Dow Jones Indices (or its affiliates), these Terms will govern (but solely to the extent of any such conflict and solely with respect to the relevant Index Data).

By accessing, receiving, or using the Index Data, you agree: (a) to be bound by these Terms; and (b) that you understand and intend these Terms to be the legal equivalent of a signed, written contract and equally binding.  Subject to Applicable Laws (as defined below), we may revise and update these Terms from time to time in our sole discretion with or without notice to you. All changes are effective immediately as of the “Last Updated” date of the then-current Terms.  You are expected to check this page regularly so you are aware of any changes, as they are binding on you.  S&P Dow Jones Indices may also notify you of changes to these Terms. Your continued access/use of the Index Data constitutes your acceptance of any such revisions. You may not modify these Terms except in writing signed by us. If you disagree with any part of these Terms, then you do not have our permission to access, receive, download, or use the Index Data.

 

2. Nature of Data Publication and Distribution

Index Data is made available, in the sole discretion of MAC Indexing, on a no-fee basis to support trading, liquidity, and transparency in financial markets.  The Index Data is:

  • simultaneously available to all approved users
  • not customized or tailored to any specific user
  • provided for use in connection with market activities related to financial products licensed to track the Index (the “Licensed ETFs”)

Nothing in these Terms & Conditions obligates MAC Indexing to provide Index Data to any person or entity.

 

3. Intellectual Property

You expressly acknowledge that: (a) the Index Data is selected, compiled, coordinated, arranged and prepared by MAC Indexing LLC through the application of methods and standards of judgment used and developed through the expenditure of considerable work, time and money by MAC Indexing LLC; and (b) as between you and MAC Indexing LLC, all rights, title, and interest in and to the Index Data, including methodologies, and all intellectual property and other proprietary rights subsisting therein or related thereto, including without limitation, all copyright, trademark, trade secret, data and database rights, are owned solely and exclusively by MAC Indexing LLC.  You agree not to take any action that is inconsistent with the foregoing. No rights are granted except as expressly set forth herein.

The methodology of the MAC Global Solar Energy Index is publicly available at https://www.spglobal.com/spdji/en/methodology/article/mac-global-solar-energy-index/.

The Index is exclusively licensed to Invesco Ltd for use in connection with certain exchange-traded funds, including the Invesco Solar ETF (TAN US) and the Invesco Solar Energy UCITS ETF (ISUN LN, RAYS LN, SOLR GY, SOLR IM, SOLR SW) (collectively, the “Licensed ETFs”).

 

4. Permitted Use

Subject to these Terms, and any applicable laws, rules, regulations, self-regulating organizational rules, including, but not limited to, banking, commodities, and securities laws (collectively, “Applicable Laws”), the Index Data may be used solely for your internal purposes in connection with:

  • market making and liquidity provision
  • trading and hedging activities
  • basket creation and redemption support
  • pricing, valuation, and risk management for internal purposes
  • monitoring performance and hedging efficiency relative to Licensed ETFs
  • operational support of Licensed ETFs

Derived data created by users from the Index Data may be used internally; however, such derived data may not be used to replicate, approximate, or substitute for the Index for any external purpose, or for any Restricted Use described below.

All permitted use must be: (i) internal, and (ii) non-transferable.

 

5. Restricted Use

The Index Data may not be used, directly or indirectly, for:

  • the creation, structuring, issuance, or distribution of any financial product, index-linked instrument, separately managed account (SMA), or any other type of investment vehicle
  • any use that would replicate, substitute for, or otherwise compete with the Index or any Licensed ETF
  • external or customer-facing benchmarking, portfolio mandates, or client reporting
  • development of any index, model, or strategy intended for external or customer use
  • redistribution, publication, or dissemination to any external party
  • use in any manner or for any purpose that infringes, misappropriates, or otherwise violates any intellectual property rights or other proprietary or contractual rights of any person, or that violates any Applicable Law.

Further, you agree not to “deep link”, “scrape”, data mine, or use any robot, spider or other similar automatic technology, process or means to access or use the Index Data for any purpose, including monitoring or copying all or any material subset of the Index Data.  Use of any Index Data (in whole or in part) with any publicly accessible AI system, including to modify or manipulate the data; to generate analysis, summaries, or reports based on the data; or for any training purposes, is prohibited. You may use portions of the Index Data with your secure, internal AI systems for purposes permitted by and subject to the limitations set forth in these Terms (e.g., to process the Index Data as otherwise permitted hereunder).  You agree not to remove or obscure any copyright notices or other notices of intellectual property rights included within the Index Data.

Without limiting our rights in Section 9, You will promptly and accurately respond to any inquiries from MAC Indexing about your use of the Index Data.  MAC Indexing reserves the sole right to determine whether any particular use constitutes a prohibited use.

 

6. Protection of Licensed Products

The Index is subject to exclusive licensing arrangements.  Any use of the Index Data that would facilitate the creation of a competing or substitute financial product, or otherwise undermine such exclusive licensing arrangements, is strictly prohibited.

 

7. No Advisory or Fiduciary Relationship

The Index Data is provided for informational purposes only. MAC Indexing does not provide investment advice and does not act as an investment adviser, fiduciary, or agent.  No user should rely on the Index Data for investment, legal, accounting, or tax decisions.

 

8. No Supplier or Vendor Relationship

Access to the Index Data does not create any service provider, supplier, vendor, advisory, or client relationship between MAC Indexing and any user.  MAC Indexing (i) provides no services or support, (ii) assumes no delivery obligations, and (iii) offers no service levels or guarantees.

 

9. Enforcement

MAC Indexing reserves the right to protect its intellectual property and licensed products.  In the event of suspected misuse, MAC Indexing may: (i) request information regarding usage, (ii) restrict or terminate access to Index Data, or (iii) take any other action deemed appropriate.

 

10. Disclaimer and Limitation of Liability

The Index Data is provided on an “as is” and “as available” basis.  MAC Indexing, its affiliates, And INDEX ADMINISTRATORS, including S&P Dow Jones Indices, make no, and expressly disclaim any and all representations or warranties of any kind, express or implied, including but not limited to: (i) accuracy or completeness, (ii) timeliness or availability, or (iii) merchantability or fitness for a particular purpose.

To the fullest extent permitted by law, MAC Indexing, its affiliates AND LICENSEES, AND INDEX ADMINISTRATORS shall have no liability for any direct, indirect, incidental, special, or consequential damages, including but not limited to: (i) trading losses, (ii) lost profits, (iii) business interruption, or (iv) any other direct or indirect loss, arising from the use of OR INABILITY TO USE the Index Data.

THE ABOVE LIMITATIONS OF LIABILITY REFLECT THE ALLOCATION OF RISK BETWEEN YOU AND US, AND SUCH PROVISIONS SHALL BE ENFORCED AS WRITTEN EVEN IF A REMEDY FAILS OF ITS ESSENTIAL PURPOSE.

MAC Indexing and its Index administrator may, at any time and without notice: (i) modify index methodologies, (ii) change or correct constituents, data, or calculations, or (iii) suspend or discontinue the Index Data.  No obligation is undertaken to maintain or continue publication.

Any pro forma, preliminary, or indicative Index Data is (i) subject to change without notice, (ii) not final, and (iii) provided solely for transparency and informational purposes.  Such data is not intended to serve as a basis for: (i) execution, (ii) benchmarking, or (iii) product development.

 

11. General

These Terms constitute the entire agreement with respect to the Index Data (unless you and MAC Indexing have executed a separate agreement regarding the Index Data).  Access to Index Data is provided voluntarily and may be modified, restricted, or discontinued at any time, with or without notice. If we discontinue your access to the Index Data, and choose not to reactivate your access upon your request, these Terms shall be deemed terminated.  Our failure to enforce any right or provision of these Terms will not be considered a waiver of that right or provision. If any provision of these Terms is held to be invalid or unenforceable by a court, the remaining provisions of these Terms will remain in effect.

 

12. Questions

If you have any questions about these Terms, please contact us at support@macsolarindex.com.

MAC Indexing LLC

www.macsolarindex.com

 

 

S&P Dow Jones Indices Trademark and Disclaimer Notice

 

The "MAC Global Solar Energy Index" (the "Index") is the property of MAC Indexing, LLC, which has contracted with S&P DJI Netherlands B.V. (a subsidiary of S&P Dow Jones Indices LLC) to calculate and administer the Index.  The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors, including Standard & Poor’s Financial Services LLC and Dow Jones Trademark Holdings LLC (collectively, “S&P Dow Jones Indices”).  S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index.  “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by MAC Indexing, LLC.  S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“SPFS”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”).

 

Products based on the Index are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices.  S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly or the ability of the Index to track general market performance.  S&P Dow Jones Indices’ only relationship to MAC Indexing LLC with respect to the Index is the licensing of the certain S&P data, certain trademarks, service marks and trade names of S&P Dow Jones Indices, and the provision of the calculation services related to the Index.  S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices and amount of the Product or the timing of the issuance or sale of the Product or in the determination or calculation of the equation by which the Product may be converted into cash or other redemption mechanics.  S&P Dow Jones has no obligation or liability in connection with the administration, marketing or trading of the Product.  S&P Dow Jones Indices LLC is not an investment advisor.  Inclusion of a security within the Index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it investment advice.

 

S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION WITH RESPECT THERETO, INCLUDING, ORAL, WRITTEN, OR ELECTRONIC COMMUNICATIONS.  S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN.  S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY MAC INDEXING, LLC, THE OWNERS OF ANY PRODUCTS TRACKING THE INDEX, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE.