Watch the OCEN for ocean investment opportunities
Sustainable investing is a broad term that encompasses more than some novice investors realize. Under this umbrella are water issues, including drinking water and investing in the oceans.
The IQ Clean Oceans ETF (OCEN) is the main idea among exchange-traded funds focused on investing in the ocean. While OCEN and ocean investing more broadly are yet to generate buzz on par with other sustainable concepts, the fund is relevant as it represents a crucial economic segment.
“Globally, the market value of marine and coastal resources and industries is estimated at $3 trillion annually, or around 5% of global GDP,” according to Credit Suisse.
With numbers like that, depth is important. The OCEN, which tracks the IQ Clean Oceans Index, answers this call. A list of 80 stocks is considerable for a thematic fund with such a narrow focus as OCEN, indicating that the ETF has the ability to effectively synthesize a sprawling investment concept.
“Thanks to innovative companies, many new products and services will help meet the challenges of the world’s oceans,” added Credit Suisse.
Improving the attractiveness of the OCEN and perhaps of ocean investment in general puts more emphasis on investment in the United Nations Sustainable Development Goals (SDGs). As more asset allocators embrace SDG priorities, blue investing could join its green counterpart in the sustainable investing lexicon.
“With global population growth, the inevitable energy transition and the necessary change in dietary habits, our dependence on the oceans is set to increase. Sustainable and future-oriented management of the oceans will promote the blue economy today and secure this key resource for the future,” said Credit Suisse.
Like other parts of the sustainable investing field, ensuring that the oceans and marine life are positioned to survive and thrive amid the effects of climate change will require significant expenditures across a myriad of industries. OCEN responds to this demand with exposure to six sectors. This includes a combined weighting of 43.6% for tech and industrial stocks, which comes in handy when it comes to ocean investing. Additionally, OCEN, as an ocean investment, could be a credible avenue for thematic growth investing.
“For reference, the population of the United States is currently around 330 million. In the United States alone in 2018, the blue economy grew faster than the rest of the country, adding $373 billion to national GDP and supporting 2.3 million jobs,” noted Ocean Conservancy.
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