The KARS ETF Lands a New Bloomberg Index

KARS will now track the Bloomberg Electric Vehicles Index (BBEV), the first-ever thematic equity index from Bloomberg Index Services, per the press release.

“We are proud to become the first asset manager to track a Bloomberg thematic equity index through our KARS ETF,” said Jonathan Krane in the press release. “We have partnered with Bloomberg in the past on fixed income funds. Due to Bloomberg’s strong equity research capabilities, we believe their index is the best suited to capture the complex and rapidly changing electric vehicles industry.”

The Bloomberg Electric Vehicles Index adopts a holistic approach to the electric vehicles industry; the index tracks electric vehicle manufacturers, electric vehicle components, batteries, hydrogen fuel cells, and raw materials utilized in the synthesis of producing parts for electric vehicles.

Companies have strict qualification criteria. They must also be a part of the Bloomberg World Equity Aggregate Index, have a minimum free float market cap of $500 million, and have a 90-day average daily traded value of $5 million.

The index is modified market cap-weighted, with the top eight stocks by free float market cap capped within the index at 5%. The remaining stocks are subjected to a 2.5% cap. Any excess weight is proportionally redistributed to the uncapped securities.

The index is rebalanced quarterly.

The index is developed by Bloomberg Intelligence (BI), using research developed by over 350 research professionals in combination with data analytics. It utilizes both quantitative and qualitative analysis, including research by the Bloomberg New Energy Finance (BNEF), in order to capture an accurate representation of the electric vehicle industry.

The Bloomberg Electric Vehicles Index was introduced in June of this year and has a sector breakdown of roughly 38% allocation in consumer discretionary, 22% in the materials sector, 20% in the information technology sector, and 20% in the industrials sector.

According to the prospectus, the top three countries in the index are China (34%), the U.S. (22%), and Germany (14%).

Previously, KARS tracked the Solactive Electric Vehicles and Future Mobility Index.

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