The Tarik.ca Capped Global Renewable Power Generation Index™, is a capitalization-weighted equity benchmark. The index tracks the performance of Global Utilities and Independent Power Producers (IPP) who generate greater than 50% of their electricity production from Hydro-Electric, Wind, Geothermal and Solar Power. Component companies are not adjusted for available float. Index components are capped at a maximum of 20% of the index.
The Tarik.ca Capped Global Renewable Power Generation Index™ is unique and the first of it’s kind.
Unlike all of the new wind, solar and clean energy ETFs. The index does not hold industrial companies involved in the construction of solar wafer, wind turbines and gear boxes. The Tarik.ca Capped Global Renewable Power Generation in contrast is a pure play on a secular growth in renewable power generation.
Strong Coal and Natural Gas costs will continue to put upward pressure on spot electricity prices globally as fossil fuels continue to generate 65% of global electricity supplies. Because Wind and Hydro electricity have high fixed costs and very low variable costs the index is also poised to benefit from a secular increase in electricity prices as margins expand while most Utilities will experience flat or declining margins.
The maturing of large conventional oil fields will continue to pose a challenge to the world’s liquid fuel needs. In light of recent breakthroughs in battery and electric engine technologies, Electric Vehicles and Compressed Natural Gas Vehicles (CNG) will grow to become an ever larger portion of the global vehicle fleet. This will put even more pressure on electricity prices in the future as costs of convention electricity increases, while the demand for electricity grows significantly.
Index Constituents (% Weighting) : Click below to Enlarge
Tarik.ca Sustainable Canadian Renewable Power Index™
As fossil fuels become increasingly more expensive in the future as old fields deplete, while unconventional sources become increasingly common as global demand for energy keeps rising, electricity will play a critical role in powering the world. Recent advancements in battery and electric engine technologies as demonstrated in the new Think and Tesla automobiles demonstrate the economic and environmental potential of electric vehicles while not compromising speed or distance. As renewable power becomes cheaper relative to fossil fuels, the demand for electricity will rise at above trend growth. Renewable power from hydro and wind are stable, established, require no fuel and are ultimately cheap. Solar power is still many years away from being economically feasible.
The Tarik.ca Sustainable Renewable Power Index is a market cap weighted index which invests in Canadian companies which derive greater than 50% of their income from wind and hydro installations. The goal of the index is to capitalize on the growing importance of electricity in our energy mix.
Index Constituents (% Weighting)
21.6% – Great Lake Hydro Income Trust
21.3% – Canadian Hydro Developers
14.0% – Algonquin Power Income Trust
10.4% – Macquarie Power & Infrastructure Income Trust
8.7% – Innergex Income Trust
7.9% – Plutonics Power
7.6% – Boralex Power Income Fund
4.0% – Innergex Renewables
2.1% – Earth First Canada
1.6% – Western Wind
0.4% – Synex International Inc.
0.3% – Run of River Hydro Inc.
Index Performance (1 Year) : Click Below to Enlarge
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