Solactive has launched the Solactive Sharing Economy Index, the firm’s latest index to tap into sources of return from thematic exposures.
The number of US internet users engaged in Sharing Economy services is expected to grow to 38% by 2021, according to eMarketer research.
The index provides access to companies active in the ‘Sharing Economy’ – the umbrella term for economic activities that generally include peer-to-peer sharing of goods and services.
It also tracks other ‘modern’ economies, such as on-demand and subscription economies.
The starting universe for the index comprises all firms listed in developed countries with free float market capitalization greater than $500 million and 6-month average daily value traded exceeding $2 million.
The index methodology then narrows the selection to include only those firms that are active within certain categories of the Sharing Economy including hospitality, private rentals, peer-to-peer lending, co-working, media streaming, food delivery, and documents sharing and management.
The index also provides exposure to companies that have invested significantly in private companies that are amongst the leaders of their industry within the Sharing Economy.
Constituents are equally weighted within the index.
Rise of the Sharing Economy
For many years, the usage of Sharing Economy services has been on the rise. Over a quarter (26%) of US internet users engaged in Sharing Economy services in 2017, with that figure expected to grow to 38% in 2021, according to eMarketer research.
According to Solactive, there are several perceived reasons for customers engaging in the Sharing Economy: superior price-performance ratios, direct communication between customer and service providers, and enhanced environmental protection and sustainability.
Timo Pfeiffer, Head of Research at Solactive, commented, “The Sharing Economy is reflecting a current shift in our societal behaviour. Nowadays, we prefer to share resources for a broader cause and more efficiency. Solactive continues to innovate in order to provide investors with a common framework to get exposure to listed and non-floating companies active in this trend.”
The index is suitable as an underlying reference for index-linked investment products such as ETFs.