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The VettaFi RavenPack Innovation Indexes focus on companies that invest heavily in research and development (R&D). R&D investment drives innovative solutions that can help companies outperform their peers over time.
A company's investment in research and development and innovation can be a strong driver of outperformance, but typically a company's financials fail to capture the full story. Traditional, human-based approaches for identifying companies with significant exposure to innovation often fall short. Data-driven, natural language processing (NLP) techniques like the ones utilized by Ravenpack offer a more efficient and comprehensive solution. This includes leveraging alternative data sources and employing advanced algorithms that identify innovation in real time.
Both the U.S. Large Cap and Small-to-Mid Cap (SMID) versions of the VettaFi RavenPack Innovation Indexes rely on a news-driven systematic procedure to identify company innovation. Utilizing a volume-based, size-adjusted measure of media attention that tracks intellectual property, RavenPack assigns daily Innovation Scores to companies based on its proprietary NLP algorithm. This scoring mechanism is used to select and concentrate Index and Sector exposure in the companies that have the highest levels of reported innovation.
The VettaFi RavenPack Large Cap Innovation Index (VRLIIT) combines the RavenPack Innovation Score with sector, security weight, and turnover constraints and rebalances on a quarterly basis. In backtesting, the Index outperformed the VettaFi US Equity Large-Cap 500 Index (SNR500) benchmark, on a since inception basis, in all but one year.
Interested in learning more about the VettaFi Ravenpack Innovation Indexes? Speak to our index specialists today.
The VettaFi RavenPack Innovation Indexes focus on companies that invest heavily in research and development (R&D). R&D investment drives innovative solutions that can help companies outperform their peers over time.
A company's investment in research and development and innovation can be a strong driver of outperformance, but typically a company's financials fail to capture the full story. Traditional, human-based approaches for identifying companies with significant exposure to innovation often fall short. Data-driven, natural language processing (NLP) techniques like the ones utilized by Ravenpack offer a more efficient and comprehensive solution. This includes leveraging alternative data sources and employing advanced algorithms that identify innovation in real time.
Both the U.S. Large Cap and Small-to-Mid Cap (SMID) versions of the VettaFi RavenPack Innovation Indexes rely on a news-driven systematic procedure to identify company innovation. Utilizing a volume-based, size-adjusted measure of media attention that tracks intellectual property, RavenPack assigns daily Innovation Scores to companies based on its proprietary NLP algorithm. This scoring mechanism is used to select and concentrate Index and Sector exposure in the companies that have the highest levels of reported innovation.
The VettaFi RavenPack Large Cap Innovation Index (VRLIIT) combines the RavenPack Innovation Score with sector, security weight, and turnover constraints and rebalances on a quarterly basis. In backtesting, the Index outperformed the VettaFi US Equity Large-Cap 500 Index (SNR500) benchmark, on a since inception basis, in all but one year.
Interested in learning more about the VettaFi Ravenpack Innovation Indexes? Speak to our index specialists today.
