Solactive AG has launched Solactive Media and Communications index tracked by BMO Global Communications index ETF. It is a free-float market-cap-weighted index intended to mirror the price movement of global stocks in the media and communications industry.
The index includes companies operating in more traditional sectors, such as telecommunications and television broadcasting, and also companies operating in new media sectors, such as social media and online streaming services.
Starting from the Solactive GBS Developed Markets large & mid cap index as the founding universe, the index implements a sector-based filtering strategy selecting companies operating in telecommunications, media and publishing services, communication equipment, web-based data, and game software. The five top components by market-cap are Google, Facebook, Apple, Cisco Systems, Verizon Communications, and the top three represented countries are the U.S., Japan, and the U.K.
It is denominated in CAD and calculated as a net total return (NTR) index. Components are weighted according to the Ucits scheme and are readjusted quarterly.
Timo Pfeiffer, head of Research at Solactive, commented: “The Solactive Media and Communications index provides a snapshot of the changing media and communications landscape, capturing the full spectrum from traditional services to newer digital forms of communication.”