I'm not sure if size counts - it would help stabilise things, but our starting list just didn't include larger companies. And what do we compare against, what is our 'benchmark' from an investment point of view?
(remember we now have 34 companies with a total capitalisation of $2B)
Australian Index Investments offers an energy index (here) with just 20 companies. Although they all sit in the S&P ASX200, which means the companies range from $0.17B to $140B (the range of the ASX200, I haven't looked at the companies in that much detail), which means that the footprint is at least $4B.
The 100 ASX Small Ords index companies run from about 40M to $3000M, with a median of $360M. You can find all this out at S&P.
Compared with the two indexes mentioned at the start of this blog, our fund is pretty small : $2B against $11B or $47B. And compared with the ASX Small Ords our fund is pretty small: a median company size of $22M.
Benchmark?
It would be pretty meaningless to try to 'beat' the ASX200 when none of the companies are in that league. If renewable energy is the grow area it should be, then the clean energy index should significantly perform any generic index, sadly though, at the moment renewables aren't the star in an investors portfolio. Part of the reason I started writing this was because I believe in the growth.
For the meantime, I'll check it against the ASX200 (XJO) and ASX Small Ords (XSO).
Oh, and also the ASX200 Energy sector (XEJ)
(remember we now have 34 companies with a total capitalisation of $2B)
Australian Index Investments offers an energy index (here) with just 20 companies. Although they all sit in the S&P ASX200, which means the companies range from $0.17B to $140B (the range of the ASX200, I haven't looked at the companies in that much detail), which means that the footprint is at least $4B.
The 100 ASX Small Ords index companies run from about 40M to $3000M, with a median of $360M. You can find all this out at S&P.
Compared with the two indexes mentioned at the start of this blog, our fund is pretty small : $2B against $11B or $47B. And compared with the ASX Small Ords our fund is pretty small: a median company size of $22M.
Benchmark?
It would be pretty meaningless to try to 'beat' the ASX200 when none of the companies are in that league. If renewable energy is the grow area it should be, then the clean energy index should significantly perform any generic index, sadly though, at the moment renewables aren't the star in an investors portfolio. Part of the reason I started writing this was because I believe in the growth.
For the meantime, I'll check it against the ASX200 (XJO) and ASX Small Ords (XSO).
Oh, and also the ASX200 Energy sector (XEJ)
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