Elkhorn Investments, the research-based investment solutions provider, has announced the listing of the Elkhorn S&P 500 Capital Expenditures ETF (CAPX) on the Nasdaq exchange.

Ben Fulton, Founder and CEO of Elkhorn Investments and former Managing Director of Global ETFs at Invesco PowerShares.

The ETF seeks to track the performance of the S&P 500 Capex Efficiency Index. “We are pleased to receive a license from S&P Dow Jones Indices for the S&P 500 Capex Efficiency Index, bringing the first capital expenditures (capex) ETF to market,” said Ben Fulton, Founder and CEO of Elkhorn Investments and former Managing Director of Global ETFs at Invesco PowerShares. “Capex is the reinvestment of resources back into a business and a key driver of future growth. The importance of capital expenditures has been widely overlooked in today’s market.”

The S&P 500 Capex Efficiency Index is designed to provide exposure to the 100 constituents of the S&P 500 which have exhibited the strongest capital discipline, in the form of efficient capital expenditures, over the near term. The index focuses on capex efficiency, not just capex spending levels, providing exposure to stocks that have maximised sales per unit of capital expenditures.

“Research shows the efficiency by which a company deploys capex is a more comprehensive stock selection metric,” added Graham Day, Director of Product Development at Elkhorn Investments. “Capex efficiency identifies companies best managing today’s resources for future growth.”

Vinit Srivastava, Senior Director, Strategy Indices, at S&P Dow Jones Indices commented: “Firms that have been efficient in turning their capital expenditures into sales have historically outperformed the broader market. We believe that the S&P 500 Capex Efficiency Index provides investors with exposure to the capex efficiency factor, one that is currently sought after with buybacks and dividend payouts at all-time highs.”