The blue economy has significant growth potential, making it a potentially lucrative opportunity for investors.
The global economic output of the ocean currently stands at $2.4 trillion per year, according to the OECD. Furthermore, the blue economy is expected to grow at twice the rate of the mainstream economy by 2030.
The blue economy is a subset of the ocean economy. It is the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem, according to the World Bank.
Investors can access the blue economy with the KraneShares Rockefeller Ocean Engagement ETF (KSEA ). The fund invests in public companies with significant impact on oceans and ocean resources, reflecting the meaningful investment opportunities within the blue economy.
Under the Hood of KSEA
KSEA aims to generate competitive returns and improve ocean health. The fund does this through shareholder engagement activity focused on pollution prevention, carbon transition, and ocean conservation, according to KraneShares.
The fund includes companies from diverse sectors including aquaculture, commercial fishing, waste management, renewable energy, and logistics.
KSEA’s top five holdings as of November 14 include Waste Management (WM), Berry Global Group (BERY), Advanced Drainage Systems (WMS), Albertsons Companies (ACI), and Loblaw Companies (L).
Rockefeller Asset Management, which has over three decades of impact investing experience, serves as the subadvisor of KSEA. The firm has partnerships with leading nonprofit organizations for ocean conservation, including The Ocean Foundation and World Resources Institute.
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Fund advisor KraneShares specializes in China, climate, and uncorrelated assets. In addition to KSEA, the firm’s climate investment portfolio includes the +KraneShares Global Carbon ETF (KRBN ), the KraneShares Electric Vehicles and Future Mobility ETF (KARS ), and the KraneShares California Carbon Allowance ETF (KCCA ), among others.
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