Direxion to list new low waste ETF on Friday

Direxion World Without Waste ETF
Ticker: WWOW
Exchange: NYSE
Expense ratio: 0.50%
Filing date: September 10, 2020
Listing Date: December 18, 2020
 
CUSIP: 25460G641
 
Index: Indxx US Circular Economy Index
Constituents: 50
Index provider: Indxx

 
Prospectus is here.

Index Description

The Index is to be comprised of issuers that are representative of the economy shifting from a linear (one user and/or one use) model to a circular one (multi-owner and/or re-use). 

The Index begins with a universe of U.S. listed securities and ADRs that derive 50% or more of their revenue from the following categories: 

sustainability of resources, 

1. sharing platforms
2. resource recovery
3. product as a service
4. life cycle extension

The sustainability of resources investment category includes companies that provide renewable energy, bio-based, or fully recyclable input material to replace single-lifecycle inputs and includes companies categorized as solar, wind, or hydro power, geothermal energy, biomass, biofuels, agriculture science, and energy-efficient solutions. 

The sharing platform investment category includes companies that enable an increased utilization rate of products by making possible shared use/access/ownership and includes companies categorized as peer-to-peer lending, sharing spaces, knowledge, content and talent sharing, crowd funding, aggregators, collaborative platforms, and software, platforms or infrastructure as services. 

The resource recovery investment category includes companies that recover useful resources or energy from disposed products or by-products and includes companies in waste management. 

The product as a service investment category includes companies that offer product access and retain ownership to internalize benefits of circular resource productivity and includes companies in the subscription economy. The life cycle extension investment category includes companies that extend the working lifecycle of products and components by repairing, upgrading, and reselling products or components.

The Index Provider will include the top 10 companies from each category as determined by largest total market capitalization. If there are fewer than 10 companies in a category, then companies from the other categories with more than 10 companies will be included based on a company’s total market capitalization until there are 50 companies in the Index.

Securities and ADRs included in the Index must be listed in the U.S.; have a minimum market capitalization of $500 million; have average daily turnover greater than, or equal to, $2 million; and be traded on 90% of the eligible trading days in the prior 6 months. The companies in the Index are equal weighted and rebalanced and reconstituted annually.

As of October 30, 2020, the Index was comprised of 47 constituents, which had a median total market capitalization of $27.5 billion, total market capitalizations ranging from $496.6 million to $749.4 billion, and were concentrated in the information technology, consumer discretionary, and induatrials sectors.

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