II. Inclusion requirements
To be considered for inclusion on this index, companies must meet these requirements:
- Significant business operations in the 3D printing industry.
- Listing on a regulated stock exchange in the form of shares that foreign investors can trade without restrictions.
- Market cap of at least $50 million .
- Average daily trading volume of at least 250,000 in the last three months.
No. 1 indicates there’s subjectively, as there’s no set revenue percentage that must be generated from 3-D printing.
STOXX Global 3D Printing Tradable Index (STG3DPP)
The index was launched with 10 holdings, and the maximum will be 30. The index is not weighted by market cap.
I. Holdings
Five holdings are disclosed:
| Company | Market Cap | Country |
| 1. Dassault Systemes | $16 B | France |
| 2. 3D Systems | $4.4 B | US |
| 3. Stratasys | $3.3 B | US |
| 4. Proto Labs | $1.6 B | US |
| 5. Greatbatch Inc. | $820 M | US |
Dassault makes design software for 3-D printing and other uses. SolidWorks is its 3-D CAD system.
Nos. 2 through 4 are also in the first index, and were previously discussed.
Greatbatch produces medical products and electrochemical products. Greatbatch Medical, a subsidiary, uses 3-D printing for prototyping (and perhaps also producing) orthopedic implants and devices.
And the others?
The others don’t seem to be disclosed. However, STOXX provides geographic and subcategory breakdowns — and, since there are only 10 holdings, it was easy to deduce three additional holdings:
| Company | Market Cap | Country |
| 6. ExOne | $684 M | US |
| 7. Arcam | $192 M | Sweden |
| 8. Faro Technologies | $589 M | US |
ExOne Co (NASDAQ:XONE) and Arcam are also in the first index, and were previously discussed.
Faro develops software-based 3-D electromechanical measurement and imaging systems.
Nos. 9 & 10?
Given the category info provided, the two remaining holdings are a U.S. company and a Japanese one. One is likely a business support company and the other an electrical component one.
II. Inclusion requirements
I converted Euros to U.S. Dollars, so keep in mind the dollar figures will vary with the exchange rate.
- More than one percent of revenue must be generated from the 3-D printing sector
- Minimum three-month average daily trading volume of 250,000 Euros ($333,675)
- Minimum free-float market cap of 80 million Euros (about $107 million)
- Company must be listed in a country that is classified as a developed market according to STOXX’s country classification model
ONE percent?! There are few publicly traded pure plays, or even half or quarter plays, so I understand setting a low revenue minimum. H
owever, 1% is ridiculous.
Takeaways
I don’t think many are aware of the existence of these indices, so I wanted to bring them to the attention of readers for a couple reasons:
(1) The holdings provide a good starting point for those interested in investing in individual stocks in the 3-D printing realm. While some of the companies are well known, others are surely new names to some.
(2) Some might be interested in investing in ETFs based on these indices when they become available. Investing in individual stocks is often the best way to go. However, investing in an ETF based on one of these indices might appeal to select investors.
There’s little doubt that 3-D printing will be a major disruptive technology. That said, the major stocks have high valuations, betas, and short interest. So, they’re only suitable for those with higher-risk tolerances.
BA McKenna has no position in any stocks mentioned. The Motley Fool recommends 3D Systems, Stratasys, Ltd. (NASDAQ:SSYS), and ExOne Co (NASDAQ:XONE). The Motley Fool owns shares of 3D Systems Corporation (NYSE:DDD) and Stratasys, Ltd. (NASDAQ:SSYS) and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems Corporation (NYSE:DDD).
The article Did You Know There Are Two 3-D Printing Industry Indices? originally appeared on Fool.com.
BA is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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