What is the purpose of the Lux Nanotech Index ™
The purpose of the Lux Nanotech Index ™ is to serve as a benchmark for the value that markets ascribe to emerging nanotechnology. As a representative Index, it is not specifically designed to outperform the Nasdaq or other indices. The Index is a tool that investors can use to understand how the stock performance of companies involved in nanotech compares with the rest of the field - and how that field, in turn, compares with the market as a whole.
What makes the Lux Nanotech Index ™ unique?
The Lux Nanotech Index ™ differs from other nanotechnology indices in three key ways. First, it represents only applications of emerging nanotechnology - new nanoscale materials and processes that exhibit size-dependent properties. This is why companies like Cabot Corporation, which dominate in established nanotechnology applications, aren't included. Second, it contains a balanced selection of companies across the nanotechnology value chain, including manufacturers of raw nanomaterials, intermediate products with nanoscale features, and nano-enabled end products - as well as makers of tools used to visualize and manipulate matter at the nanoscale. Finally, the Index is balanced across the industry sectors that are being most impacted by nanotechnology today, That's why, for example, there no large life sciences companies are included; none have significant nanotechnology R&D or product applications today.
What methodology was used to select the stocks for the Lux Nanotech Index ™
The Index's selection committee leverages Lux Research's rigorous analytical frameworks developed in its authoritative studies of nanotechnology commercialization, as well as its proprietary data about nanotechnology R&D activity across industry sectors. The Index is intended to be representative of the nanotechnology universe, including companies that are involved with funding nanotechnology development, developing nanotechnology applications, manufacturing goods that incorporate those applications, and supplying tools and instrumentation to nanotechnology researchers.
How can someone buy the index?
The PowerShares Lux Nanotech Portfolio, traded on the American Stock Exchange under the symbol "PXN", seeks to replicate the performance of the Lux Nanotech Index ™ While the Index is quoted intraday under the symbol "LUXNI", it is not an investable product. For more information regarding the PowerShares Lux Nanotech Portfolio, investment professionals should call 800-983-0903 and individual investors should call 800-THE-AMEX.
How frequently are stocks added and removed to the index?
The Index is rebalanced quarterly each March, June, September and December, at which time the selection committee can add or remove new stocks.
Who decides on new additions and removals to the Index?
The Index selection committee, composed of Matthew Nordan of Lux Research and Mark Kimsey of K&Z Partners, makes the final decision on all additions and removals to the Lux Nanotech Index ™
What is the criteria for adding and removing stocks?
New additions to the Lux Nanotech Index ™ must be representative of the nanotechnology universe, including companies that are involved with funding nanotechnology development, developing nanotechnology applications, manufacturing goods that incorporate those applications, and supplying tools and instrumentation to nanotechnology researchers. To be eligible for inclusion in the Lux Nanotech Index ™ companies must: 1) be listed on the New York Stock Exchange or American Stock Exchange, or quoted on the NASDAQ National Markets or Small Cap Market systems; 2) have a minimum $75 million market valuation and 3) have a minimum average daily trading volume over the preceding three months of 50,000 shares.
