Description

SETM aims for a less carbon-intensive economy and global cleaner energy. It gives pure-play exposure to a portfolio of 100-120 US and foreign companies that derive half of their revenue from several activities involving a broad range of critical minerals considered energy transition materials. These activities include mining, exploration, development, and production of metals and raw materials such as uranium, copper, lithium, nickel, cobalt, graphite, manganese, rare earths, and silver. The investable universe is identified through a proprietary selection methodology which includes industry publication reviews and fundamental research. All eligible securities are included as constituents provided that minimum market-cap and liquidity requirements are met. While the index is market cap-weighted, an individual security capping of 4.75% and a 25% group commodity capping are implemented to ensure a diversified portfolio. Index reconstitution and rebalancing are done semi-annually.