Investors seeking equity diversification opportunities would do well to consider the KraneShares Rockefeller Ocean Engagement ETF (KSEA ). The fund currently sits at the edge of strong buy territory, based on technical indicators.
KSEA’s strategy yields a portfolio of diversified sector weights from traditional benchmarks. It makes a strong complement to existing equity allocations and sustainability-focused portfolios.
KSEA is actively managed and seeks to invest in companies that significantly impact oceans and ocean resources, known as the “blue economy.” Investing in these companies allows Rockefeller Asset Management, the fund’s subadvisor, to deploy its proactive engagement strategy. Active engagement with companies provides the dual benefits of risk reduction and increased sustainability.
The fund generates a differentiated sector profile from broad equity benchmarks. This makes KSEA a notable complement to existing equity holdings. Industrials (37.37%), consumer staples (15.53%), and materials (12.27%) made up the fund’s largest sectors by weight as of September 30, 2024.
KSEA: A Fund to Watch
KSEA currently trades above its 200-day simple moving average (SMA) and hovers just below its 50-day SMA. Funds above both their 50- and 200-day SMA are considered strong buys for technical traders and trend followers. The ETF is up 7% YTD as of November 12, 2024, according to Y-charts data.
Through its ocean focus, KSEA brings diversification potential to existing sustainability-focused portfolios. KSEA invests in commercial fishing, waste management, aquaculture, renewable energy, and other industries.
The strategy focuses primarily on companies dubbed “ocean improvers.” These companies offer the most significant potential positive impacts for sustainability via engagement. The fund also invests in companies categorized as “ocean leaders” and “ocean solutions.” The strategy avoids companies that endanger ocean health, such as deep-sea mining companies or offshore oil.
Current top holdings within the fund include Waste Management (4.37% weight), Trimble Inc (4.00%), and Crown Holdings (3.86%) as of November, 12, 2024. KSEA has a management fee of 0.86%.
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