The effects of the New Deal are still felt today. With the emergence of the fight against climate change, some politicians are pushing for a Green New Deal.
The United Nations is advocating for a “Blue Deal.” That highlights the potency of the ocean economy while potentially calling attention to related investment implications. Those are accessible via the KraneShares Rockefeller Ocean Engagement ETF (KSEA). The fund is a new ETF, but it could be a well-timed one. That’s because the blue economy is gaining more attention as a credible investment thesis.
KSEA’s status as an actively managed ETF is pertinent to advisors and investors considering it. That’s because index-based strategies may not be nimble enough to respond to the evolving blue economy investment opportunity set.
Blue Economy Still Nascent
While the green economy has captured investors’ attention in recent years, the blue economy as an investable theme is still in its infancy. Fortunately, market participants can let KSEA do the heavy lifting for them. That could be the right choice because data confirms the credibility of the investable blue economy.
“The global export value of ocean-based goods, such as seafood and port equipment, and services including shipping and coastal tourism was estimated at $1.3 trillion in 2020,” according to the UN Conference on Trade and Development (UNCTAD).
The notion of a Blue Deal could have benefits on other fronts, and those areas could provide tangible benefits to assets such as KSEA.
“It’s also estimated that an investment of $2.8 trillion today in four sustainable ocean solutions – conservation and restoration of mangroves, decarbonization of international shipping, sustainable ocean-based food production and offshore wind production – would yield net benefits of $15.5 trillion by 2050,” added UNCTAD.
Linking the ocean economy to issues such as decarbonization and renewable energy could serve to broaden the audience of potential end users of products such as KSEA. Other factors could highlight long-term opportunity with KSEA as well, including emerging markets looking to diversify maritime economies, the importance of oceans and waterways in the UN’s Sustainable Development Goal (SDG) and the fact current levels of investment in the blue economy are relatively small, indicating there’s a long runway for growth.
KSEA is subadvised by Rockefeller Asset Management and has 47 holdings.
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