Investing in the U.S. ocean economy — or the “blue economy” — can be a valuable diversification option for a portfolio.
The U.S. National Ocean Service estimates that the businesses dependent on the U.S. oceans contribute $282 billion in economic value. Additionally, according to the organization, nearly three million people are employed by businesses that rely on the U.S. oceans. The blue economy extends to transportation as well. The report added that marine transit plays a part in 76% of U.S. trade.
Fishing for Value
The blue economy delivers considerable value. Investors and fund managers may seek methods to tap into the wide array of growing gains. “We view the blue economy to encompass a wide array of industries that have direct and indirect links to the ocean. It is a diverse universe of industries and companies that range from marine transportation, port infrastructure, offshore renewable energy, the global seafood complex, and even to companies that have a role to play in developing the circular economy,” a recent Rockefeller Asset Management report noted.
The actively managed KraneShares Rockefeller Ocean Engagement ETF (NYSE Arca: KSEA) offers access to the benefits of the blue economy. The fund invests primarily in companies whose operations involve and impact the ocean and its subsequent resources. These investments include commercial fishing, waste management, offshore engineering, and trade infrastructure, among others.
Global in its focus, KSEA is benchmarked to the MSCI All Country World Index, which includes large and mid-cap companies from developed and emerging markets. The fund operates with a net expense ratio of 0.86%.
Opening in September of 2023, KSEA is currently up 4.33% over the last three months. The fund has $2.7 million in assets under management.
Extensive Experience
As the sub-adviser for KSEA, Rockefeller Asset Management possesses decades of experience working with global markets and the ocean conservation effort. Rockefeller Asset Management’s extensive knowledge of the blue economy drives the decisions made regarding the fund’s portfolio.
Beyond KSEA, KraneShares offers an extensive portfolio of investments related to climate and carbon-focused markets. These include the $62 million KraneShares MSCI China Clean Technology Index ETF (NYSE Arca: KGRN) and the $303 million KraneShares Global Carbon Strategy ETF (NYSE Arca: KRBN).
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