Photonics & Optical Infrastructure Index

Overview

The Photonics & Optical Infrastructure Index is a rules-based equity index designed to provide targeted exposure to companies generating meaningful revenue from photonics, optical networking, and optical sensing technologies.

The index addresses a key gap in existing thematic strategies, which often include broad exposure to semiconductors, software, and general technology, diluting targeted exposure to the optical layer of modern data infrastructure.

Objective

The index seeks to track the performance of publicly listed companies whose business models are directly tied to the development, manufacturing, and deployment of photonics and optical infrastructure technologies, including optical components, networking systems, and advanced sensing solutions.

The Problem with Existing Strategies

Many existing “AI” and “technology” ETFs include companies with only indirect exposure to data movement and infrastructure, such as:

• Semiconductor manufacturers
• Software and cloud providers
• Broad technology conglomerates

While relevant, these exposures reduce the purity of strategies focused on the optical backbone enabling modern data transmission and sensing.

The Solution

The Photonics & Optical Infrastructure Index applies a transparent, rules-based methodology to identify companies with direct and measurable exposure to photonics and optical technologies.

Key features include:

• Revenue-based eligibility thresholds
• Explicit segment-level qualification requirements
• Inclusion of both pure-play and infrastructure-enabling companies
• Strict exclusion of companies without clearly disclosed optical exposure

Index Construction Highlights

• Eligibility: Companies must meet defined revenue thresholds tied to photonics and optical activities
• Classification: Companies are categorized based on level of exposure (Next-Gen, Core, Supporting)
• Weighting: Multi-factor scoring based on revenue exposure, market cap, and liquidity, with classification-based adjustments
• Rebalancing: Quarterly
• Reconstitution: Semi-annual

Differentiation

The index is designed to deliver:

• Targeted exposure to the optical infrastructure layer of AI and data networks
• Inclusion of both pure-play photonics and enabling infrastructure companies
• Reduced reliance on broad semiconductor-heavy strategies
• Transparent and repeatable rules-based construction

Use Case

The index is designed to serve as the underlying benchmark for:

• Exchange-traded funds (ETFs)
• Institutional investment products
• Thematic mandates focused on AI infrastructure and data movement

Availability