Solactive launches first-ever investable thematic index tracking photonics industry
Solactive has launched the Solactive EPIC Core Photonics Index. Photonics is the physical science of generating, detecting, and manipulating light.
Photonics applications and integrations are ubiquitous and are included in everyday life products from smartphones, televisions, laser printers, LED lighting to more advanced applications, such as medical diagnostics and security systems. Companies operating in these sectors all require photonics technology as a key aspect of their functionality.
The European Photonics Industry Consortium (EPIC), a non-profit industry advocate for Photonics, has collaborated with Solactive and Anatase Ltd. in developing the world’s first investable index, which tracks the photonics industry on a global scale.
Carlos Lee, General Director at EPIC and the inspiration for the index, explained: “Photonics is the next technology growth story. Currently, the Photonics market is valued at nearly USD800 billion and is expected to reach USD1.2 trillion by 2026 (growing at 8 per cent per year). EPIC was formed in 2003 to promote and support the Photonics Industry.”
The Solactive EPIC Core Photonics Index is a representation of companies that derive a majority of their revenues from Photonics manufacturing activities. The selection of the Solactive EPIC Core Photonics Index’s constituents is based on the comprehensive expertise provided by EPIC, the leading authority in the Photonics Industry.
“Industry consolidation will drive Photonics investment returns over the next 10-20 years, and while individual company returns are potentially very large, it is difficult for investors to differentiate between the winners and losers over time. This is why a thematic index approach makes more sense,” adds Markus Barth, 30-year veteran index architect and CEO of consulting firm Anatase Ltd. who designed the index methodology. “The environmental impact of Photonics manufacturing is also significantly lower. The index has over a 90 per cent lower carbon footprint than the overall US and European markets.”
“Solactive is recognised globally as a leader in the thematic space, and we are delighted that EPIC has chosen to partner with us for this first of its kind launch,” says Timo Pfeiffer, Chief Markets Officer at Solactive.