Van Eck Global, exchange traded fund (ETF) sponsors of Market Vector’s Environmental Services (EVX), estimates the waste management industry accounts for more than 1% of total GDP in the U.S. This is the premise for EVX. America throws out over 245 million tons of trash per year, about 4.5 pounds of trash per person, according to the EPA. Time to recycle. The waste will continue its flow so it must change directions, with recycling expected to grow about 19% a year by 2011. Trang Ho for Investor’s Business Daily also reports worldwide, hazardous waste disposal is growing at a rate of about 7.8% per year for the next 5 years.
EVX holds 25 companies that provide waste management services to homes, businesses and cities. Businesses such as trash collection, landfills, water treatment, hazardous waste disposal, recycling and environmental consulting. Launched in October 2006, the ETF has gained 21%. Top holdings include Waste Management (WMI), Veolia Environment (VE) and Republic Services (RSG). Go ahead and turn your trash into cash and recycle. This ETF is right in step with the green movement and shift to alternative energy investing seen on Wall Street.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.