TriLine Index Solutions, an affiliate of BP Capital Fund Advisors, has launched the NYSE Pickens Oil Response ETF (NYSE: BOON).
BOON tracks the performance of the NYSE Pickens Oil Response Index, which is owned and administered by ICE Data Indices, LLC and is based on years of research and is crafted in the same spirit as T Boone Pickens’ plan for American energy – the Pickens Plan.
“We are excited to work with the BP Capital team for the launch of BOON, a new ETF that leverages the performance of the NYSE Pickens Oil Response Index, one of ICE Data Indices’ proprietary index data products. This is the first time in our history that we are unveiling an index that honours an individual, in this case T Boone Pickens,” says Dwijen Gandhi, Senior Director in ICE Data Indices.
The Index is comprised of equities highly correlated to energy, based upon the price of the global benchmark for oil, ICE Brent Crude. The Index includes not only traditional energy companies, but also firms that are “energy-intensive” end users of energy who have the potential to benefit from the abundance of US supply as well as growing global demand for energy. The inclusion of end users is intended to lessen the effect of the “boom and bust” nature of commodity cycles and attempts to mitigate downsize capture while preserving upside capture. The Index is equally-weighted and reconstitutes annually while rebalancing quarterly.
“We have spent considerable time developing this methodology and are humbled to bring it to the ETF marketplace as an extension of T Boone Pickens’ legacy,” says Toby Loftin, Managing Principal at TriLine Index Solutions. “We believe this approach better reflects the realities of the changes and future of global energy markets in a post-shale era.”