Increased interest in 3D printing has resulted in several stock index products, but this one is a little different.
As a reminder to readers unfamiliar with a stock index, its simply a basket of companies’ stocks that relate to a topic. So a “Computer Index” might include Apple and IBM, for example. Stoxx is a company that produces these indices, which are cheaper to invest in than mutual funds, who often charge steep management fees that take away from your profits.
Stoxx previous offered the Stoxx Global 3D Printing Tradable Index, but here’s the thing: a company would qualify for inclusion in that index if it derived at least ONE whole percent of its revenue from 3D printing. The new “Pure Play” index insists on at least ten percent.
While you might think this is a little strange, it isn’t. Why not 100%, as it supposedly is a “Pure Play”? It turns out that several of the big players in the space are actually subsidiaries of larger firms. For example, Up! 3D printers are produced by Tiertime, a large Chinese conglomerate. Similarly, XYZ Printing is a subsidiary of a large Korean conglomerate. When these big companies are soaking up ten percent of their revenue from 3D printing, you’d want them on this list.
Via EFT Strategy