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Solactive launches Future Cars Index Canadian Dollar Hedged index


Solactive has launched the Solactive Future Cars Index Canadian Dollar Hedged, which is the new underlying index for the Evolve Automobile Innovation Index ETF (CARS).

CARS is now trading on the Toronto Stock Exchange and is designed to give Canadian investors access to an exciting investment theme in the development of future cars.
The Solactive Future Cars Index Canadian Dollar Hedged provides equal-weighted exposure to companies that are directly or indirectly involved in developing electric drivetrains, autonomous driving or network connected services for automobiles. The screening procedure selects liquid companies from a starting universe of developed stocks operating in car manufacturing, automobile equipment and electronics, among other car-related subsectors. Companies with the highest R&D to sales ratio are selected as index components. The Index is currently composed of 32 companies. Examples of components include General Motors, Tesla Inc. and Texas Instruments Inc.
Timo Pfeiffer, Head of Research, says: “The automobile industry is transforming at a very rapid pace. The International Motor Show held this month in Frankfurt confirmed this. Electric engines and cars, autonomous driving, and app- driven services like Uber are just a few examples of the revolutionary changes occurring in the automobile industry. An ETF created around such an emerging trend can be interesting for investors, as the companies targeted are likely to benefit from these changes.”
The Index is equally weighted and calculated as a price return (PR) and net total return (NTR) Index. The Index is published in Canadian dollars. Foreign currency exposure is hedged back to Canadian dollars. The composition is readjusted quarterly.

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