WilderShares Homepage (ECO) - SINCE 2004 : THE LEADER IN TRACKING RENEWABLE ENERGY

ABOUT ECO INDEX

Philosophy Behind WilderHill^® Clean Energy Index (ECO)

The world’s first and best known for climate change solutions, a priority of the WilderHill^® Index (ECO) is to define and track the Clean Energy sector: specifically, businesses that stand to benefit substantially from a societal transition toward use of cleaner energy, zero-CO2 renewables, and conservation. Stocks and sector weightings within the ECO Index are based on their significance for clean energy, technological influence and relevance to preventing pollution in the first place. We emphasize new solutions that make both ecological and economic sense, and aim to stay the leaders in this field.

Visit the New York Stock Exchange (NYSE) website, for specifications, history, and information on live calculations of the WilderHill Index, symbol ECO. An independent product which is the Invesco WilderHill Clean Energy ETF, symbol PBW, seeks to mirror the performance of ECO. Investors who wish to trade the clean energy sector as defined by the WilderHill Index—via that independent fund PBW—can contact their Broker, or PowerShares. We note that Exchange-Traded Funds (ETFs) generally carry the characteristics of intra-day trading and transparency.

For more on antecedents to the WilderHill Clean Energy Index, see the Hydrogen Fuel Cell Institute (www.h2fuelcells.org) - and early Hydrogen Fuel Cell Index, 1999-2007; also see "Capitalizing on Solutions that Can Make Ecological and Economic Sense.". We subscribe to modern portfolio theory and believe that for ECO the advantages of an indexing approach are persuasive. We pursue 'intelligent-indexing' combining analysis-based stock selection with sector weightings, according to technological and ecological considerations. Notably we don't change composition more often than Quarterly Index rebalancings. We don't try to 'beat the market'-nor try to pick 'under-valued' stocks. General Rules as guidelines for ECO Index are here.

We do not take defensive positions within the Index when the markets decline, appear over-valued, or the Index is experiencing unusual volatility. Rather than try to select Index components based on financial or market data, we robustly look at clean energy broadly conceived and select stocks and sectors on technical and environmental criteria. We judge our performance by how well the Index tracks movements of the clean energy sector-down and upwards-and anticipate significant ongoing volatility in this sector.

We apply qualitative analysis at the Quarterly rebalancings to determine Index securities, sectors and weightings. Criteria include importance of the stock and sector to clean energy, relevance to climate change, pollution prevention, technological significance, intellectual property rights, salience to preserving biodiversity or ecological integrity and other non-financial criteria. The Index is expected to be a diversification tool. Given the inherent volatility of this sector with many small high-tech companies and strong price movement, the WilderHill Index (ECO) is expected to be notably volatile as well. Nuclear power is not allowed in ECO.

We weight the Index sectors according to importance and technological relevance, not views about individual stocks. ECO components are evenly divided within a sector to assign weights--we feel this modified equal weighting is the most intellectually-robust approach for ECO. Following Quarterly rebalancings, stocks will move for the next three months according to their respective prices, and then are automatically reset for the next Quarter's start.

WilderShares is an Index Provider and the source for the WilderHill Clean Energy Index (ECO). Our emphasis is on new solutions that make ecological and economic sense. The real-time Indexes from WilderShares are designed to be leading benchmarks, and may be licensed to third parties offering tracking funds seeking to mirror the performance of our Indexes. WilderShares is an independent company.

ECO INDEX^® CONSTRUCTION

Eligibility Criteria for Index Components

(1) The Clean Energy Index uses a modified equal dollar weighting methodology. No single stock may exceed 4% of the total Clean Energy Index weight at the quarterly rebalancing.

(2) For a stock to be included in the selection universe, WilderHill must identify a company as one that has a significant exposure to clean energy, or contribute to advancement of clean energy or be important to the development of clean energy.

Companies in the Underlying Index generally (i) help prevent pollutants such as carbon dioxide, nitrous oxide, sulfur oxide or particulates and avoid carbon or contaminants that harm oceans, land, air or ecosystems structure, (ii) work to further renewable energy efforts and do so in ecologically and economically sensible ways and (iii) incorporate the precautionary principles into their pollution prevention and clean energy efforts.

Similarly, companies in the Index generally will not have their majority interests in the highest-carbon fuels: oil or coal. Large companies with interests outside clean energy may be included if they are still significant to this sector.

(3) Market capitalization for a majority of Clean Energy Index stocks is typically $200 million and above.

To account for notable but smaller companies sometimes significant to the clean energy field, a minority of Clean Energy Index stocks may have market capitalizations between $50 million-$200 million; these are then each ‘banded’ at rebalance to a lower one half of one percent (0.50%) weighting as detailed in Calculation Methodology.

(4) Stocks to be eligible for the WilderHill Clean Energy Index must:

have three-month average market capitalization of at least $50 million;
have a three-month average closing price above $1.00;
be listed on a major U.S. exchange;
reach the minimum average daily liquidity requirements for sufficient trade volume as determined by the Index Provider / Calculation Agent.

CALCULATION METHODOLOGY

The Index is calculated using a modified equal dollar weighting methodology. Component securities and weights are determined by their respective sector and size. Each Sector is assigned an aggregate weight within the index. Components less than $200 million in total market capitalization are set to one-half of a percent (0.5%). The remaining components in each Sector are equally weighted by using the Sector weightings minus the sum of the weights of less than $200 million in market capitalization. Sector weightings were initially determined by the Index Provider and are reviewed each quarter in conjunction with the scheduled quarterly review of the Index. Generally within each sector, components weighting cannot exceed four percent (4%) of the index at rebalance.

Effective First Quarter 2021, quarterly Rebalance announcements for WilderHill Clean Energy Index (ECO) occur after close on the sixth index business day prior to the last index business day of the month in March, June, September, and December.

Rebalance Announcements are made by the Calculation Agent: the New York Stock Exchange. Contact NYSE for further information.

We also will post new ECO compositions early on each new Quarter, here on our website.

(Prior to Sept. 2006 the Index was calculated using a modified equal weighting methodology with components equally weighted within their respective Sector, each Sector assigned an aggregate weight, sector weightings initially determined by the Index Provider and reviewed each quarter in conjunction with quarterly review, and within each sector components weighting could not exceed three percent (3%) of the index).

Stock Universe

Companies selected generally include those focusing on technologies for greener, renewable energy. The Clean Energy Index includes companies that contribute to advancement of clean energy, including those developing and selling energy technologies and energy management services designed to address efficiency and environmental challenges as well as changes in fossil fuel resource abundance. Trends affecting adoption of clean energy technologies include (but are not limited to) conventional air pollution, carbon dioxide and other greenhouse gas pollution leading to global warming, and risks to centralized grid or other energy infrastructure.

There is a strong bias in favor of pure play companies focused on technologies in (i) renewable energy including solar, and wind power; (ii) improving energy efficiency; (iii) advanced energy storage; (iv) cleaner fuels and biofuels; or (v) innovative power delivery, materials, energy conversion including fuel cells and related industries. Companies in emerging clean energy fields, such as hydroelectric, geothermal, wave, tidal, and others, will be considered with respect to carbon content, impact upon marine and terrestrial biodiversity, and the degree to which they advance or reflect the clean energy sector.

The Index

The Index is generally comprised of companies in the following areas:

Renewable Energy Supplies - Harvesting: These are the producers of energy that is renewably-made, or manufacturers relevant to green energy such as the makers of turbines and rotors used for wind power, makers of solar photovoltaic panels and suppliers of clean energy systems, and the makers of biofuels derived from renewable vegetable crops, as examples. These renewable methods supply desired electrical power directly where needed—or this “green” power could be stored as a clean fuel like hydrogen. Wind, solar biofuels, hydro and waste-to-energy notably carry less burden of pollution, and renewable sources allow distributed generation that makes power closer to need.

Energy Storage: This wide-ranging category includes advanced batteries and materials that hold energy in familiar and novel ways, flywheels that make use of momentum and spinning at high speeds to store energy, supercapacitors that build and then release large amounts of power very quickly, and storage by compression, hydrides or other means. Because most renewable power is not ‘firm’ meaning not always on—like solar power that works only by day, or wind power just at windy times—joining renewable power with energy storage systems often makes sense.

Energy Conversion: These are the devices that convert an assortment of power, or fuels, or other inputs such as unmodulated electricity, gasoline/diesel etc. into the more desired electrical, motive, lighting, or other power/force wherever needed. This could include complex whole conversion systems producing useful work such as electrical vehicles and plug in hybrids, or more singularly separate items like LEDs, and the inverters, advanced motors and materials for conversion to an intended electrical, mechanical power. Energy conversion is critical but also generally depends on having cleaner fuel for inputs or on innovative technologies that convert existing fuels more cleanly, preventing pollution.

Power Delivery and Conservation: Of importance in clean energy systems are the electronics and other items needed to improve efficiency and energy conservation in the first place, as well as capital equipment for production or manufacture of clean energy systems. Like energy conversion it can include devices that smooth power outputs, convert DC to AC and match power loads to output. This sector can include inverters and equipment for power conditioning, and in transport, power management for hybrid, hydrogen and fuel cell vehicles.

Greener Utilities: Among utilities in the United States are several explicitly emphasizing cleaner methods of making electric power including wind, solar, biogas, geothermal, hydro and others that can prevent pollution, while also ensuring greater price stability for the consumer. Unlike conventional plants, the price of renewable energy—though still costly—is widely declining. Should pollution such as from coal or oil be seen as more significant, or traditional fuel supplies be constrained or interrupted and prices rise—the alternative, independent and renewable approaches to producing utility power to the grid can become increasingly relevant. Nuclear power generation is notably excluded from this Index for clean energy.

Cleaner Fuels: Includes various liquid, solid and other biofuels derived from renewable sources or crops; for instance cellulosic, sugar, algae, or other feedstock in ethanol, biobutanol or biogasoline, as well as biomass and waste to energy. In the future hydrogen—a gas that is the lightest and most abundant element—may become an ‘energy carrier’ by moving power made in one place to where it is needed. However, there are numerous daunting technical challenges including the lack of a hydrogen infrastructure and very high cost; hydrogen fuel cells are in only early technical development, not widely commercialized, and are still far more costly than fossil fuels in practice.

INDEX (ECO) SECTOR & STOCK WEIGHTS

FOR START OF Q2 2024. 71 STOCKS.

Each stock freely floats according to its share price after rebalance.

^* Stocks below $200 million in size at rebalance are banded with a 0.5% weight.

Renewable Energy Harvesting - 13% weight (7 stocks @1.64% each + 3 *banded)

Altus Power,AMPS. Large utility-scale & rooftop solar PV, community solar.

Array Technologies,ARRY. Solar, tracker mounts follow sun through the day

Canadian Solar,CSIQ. Solar, vertically integrated solar manufacturer, China.

^*Emeren,SOL. Solar development, Europe, US, plus China, global pipeline.

First Solar,FSLR. Thin film solar, CdTe low-cost alternate to polysilicon.

JinkoSolar,JKS. Solar, wafers through solar modules, China-based OEM.

^*Maxeon,MAXN. Solar, efficient PV panel manufacturer after spinoff.

Nextracker,NXT. Solar trackers, optimizing PV daily performance yield.

Ormat,ORA. Geothermal, also in areas of recovering heat energy.

^*TPI Composites,TPIC. Wind Blades; also light-weighting transportation.

Energy Storage - 29% sector weight (19 stocks @1.50 each + 1 *banded stock)

Albermarle,ALB. Lithium, specialty materials in batteries for energy storage.

Amprius Technologies,AMPX. Silicon anode batteries, greater energy density.

^*Atlas Lithium,ATLX. Lithium, battery metals nickel, rare earths, graphite.

Chemical & Mining of Chile,SQM. Lithium, large producer in energy storage.

Enovix,ENVX. Silicon-anodes, 3D for improving new lithium-ion batteries.

Fluence,FLNC. Battery storage, for renewables and digital applications.

Freyr,FREY. Greener batteries, after IRA it has moved from Nordics to US.

Lion Electric,LEV. Urban electric trucks, buses, vans; vehicle to grid storage.

Lithium Americas,LAC. Lithium, deposits in the State of Nevada in US.

Lithium Americas Argentina,LAAC. Lithium deposits Argentina; China nexus.

NIO Inc,NIO. EVs, China-based startup premium vehicles, battery as a service.

Piedmont Lithium,PLL. Lithium, US domestic source battery-grade lithium.

Quantumscape,QS. Battery, solid state lithium-metal energy dense fast charge.

Rivian,RIVN. Electric vehicles, trucks and commercial fleets, charging

SES AI Corp,SES. Li-metal anode battery, may be safer, faster-charging.

Sigma Lithium,SGML. Lithium, in planning & pre-construction, sites in Brazil.

Solid Power,SLDP. Solid electrolyte battery, Earth-abundant materials.

Standard Lithium,SLI. Lithium, from brine in U.S., vs. traditional ponds.

Tesla,TSLA. Electric vehicles, pure-play across EVs, advanced energy storage.

Xpeng,XPEV. Electric vehicles, advanced mobility, swappable batteries, China.

Power Delivery & Conservation - 24% sector (17 stocks @1.41% each)

Ameresco,AMRC. Energy saving efficiencies, net zero CO2, decarbonization.

American Superconductor,AMSC. Wind, grid conditioning; superconductors.

Blink Charging,BLNK. EV Charging, among bigger EV charging networks.

Chargepoint,CHPT. EV Charging, global including for fleets and businesses.

EVgo,EVGO. EV Charging, DC fast-charging Networks, renewable power.

Gogoro,GGR. Electric scooters, swappable battery stations, Taiwan-based.

Itron,ITRI. Meters, utility energy monitoring, measurement & management.

MYR Group,MYRG. Grid transmission, distribution aids solar & wind farms.

NaaS Technology,NAAS. EV charging, energy storage balancing wind, China.

Navitas Semiconductor,NVTS. Gallium Nitride GaN fast charging EVs.

Polestar,PSNY. Electric vehicles pure play, global, and is based in Sweden.

Preformed Line Products,PLPC. Grid products and transmission OEM, solar.

Quanta Services,PWR. Infrastructure, modernizes grid & power transmission.

Shoals,SHLS. Solar, for electric balance of system, wiring, combiners.

Universal Display,OLED. Organic light emitting diodes, efficient displays.

Wallbox,WBX. EV Charging, allows bi-directional vehicle to grid, V2G.

Wolfspeed,WOLF. Electrifying power, Silicon Carbide SiC, converters.

Energy Conversion - 22% sector weight (15 stocks @1.46% each)

Advanced Energy,AEIS. Power conditioning: inverters, thin film deposition.

Archer Aviation,ACHR. Electrifying aircraft, vertical takeoff & landing.

Ballard Power,BLDP. Mid-size fuel cells; PEM such as in transportation.

Bel Fuse,BELFB. Transformers, power supplies, circuit protection, AC/DC.

Bloom Energy,BE. Stationary fuel cells, not-yet cleanest/renewable fuels.

Energy Vault,NRGV. Gravity energy storage; can repurpose old wind blades.

Enphase,ENPH. Microinverters, also energy storage systems and software.

ESCO Technologies,ESE. Power management, shielding, controls, testing.

FuelCell Energy,FCEL. Stationary fuel cells, distributed power generation.

Gentherm,THRM. Thermoelectrics, heat energy, battery management.

Joby Aviation,JOBY. Electric aircraft, cleaner, more energy efficient.

Lifezone Metals,LZM. Low-carbon battery metals, Nickel no smelting.

MP Materials,MP. Rare Earths, domestic U.S. source Neodymium, NdPr.

Plug Power,PLUG. Small fuel cells, for eg forklifts; drop in replacements.

SolarEdge Technologies,SEDG. Inverters, solar optimizers, inverters.

Greener Utilities – 9% sector weight (7 stocks @1.28% each)

Brookfield Renewable,BEPC. Renewables hydro, wind, solar; energy storage.

Eos,EOSE. Zinc batteries, 100% discharging, longer-life, not-li-ion on grid.

ReNew Energy,RNW. India renewables, among largest there in solar & wind.

Stem,STEM. Microgrids, smart new energy storage via machine learning.

Sunnova,NOVA. Solar provider, operating fleet for residential, plus storage.

SunPower,SPWR. Solar system provider, storage and distributed generation.

Sunrun,RUN. Residential solar systems, PPA, lease or purchase rooftop PV.

Cleaner Fuels – 3% sector weight (2 stocks @1.50% each)

Lanzatech,LNZA. Carbon to more sustainable fuels, materials bio-recycling.

Opal Fuels, OPAL. Renewable natural gas RNG, CH4 from landfills, dairies.

Starting March 2021, ECO rebalance announcements will be after close on the 6th business day preceding the last business day of the month. Next Effective: Open of Wed Mar 31, 2021
Historical Closing Prices for ECO Index from 12 August 2004 Inception through 31 December 2023
ECO Index^® chart since Launch on August 16th, 2004
Disclosure: from the 1990s the co-founder and manager of the ECO Index began to sell personal holdings pertinent to any polluting fossil fuels - and to buy/hold instead equities in the clean energy space due to personal conviction and concerns about climate change; some of these may be in the ECO Index, and they are all held-very long-term only.

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