The world continues to move towards reducing its carbon footprint, especially amid rising oil and gas prices. In fact, this move towards energy efficiency is being reflected in construction with the increase in smart buildings — growth in the sector could reach as much as $78 billion in less than 10 years, according to research.
“An increase in industrialization and the need to optimize energy consumption is leading to growth in the smart buildings market, which is estimated to be valued at $78.2 billion by 2030, according to a report by Allied Market Research,” an Environmental Leader article said.
“The energy management segment holds the highest share of the smart buildings market, contributing to around one-third of the total market share based on application, per the report,” the article added further. “Allied Market Research expects that energy management will continue to hold a dominant share of the market through the forecast period.”
This type of exponential growth paves the way for opportunities in thematic exchange traded funds (ETFs) that focus on smart buildings. Fortunately, Global X has a fund that does just that.
Capitalizing on Smart Building Growth
One such fund to consider in this potential area of growth is the Global X Green Building ETF (GRNR), which seeks to invest in companies that are positioned to benefit from increased demand for buildings that reduce or eliminate negative impacts and/or create positive impacts on the natural environment, including companies involved in green building development, green building management, and green building technologies and materials.
GRNR offers investors:
- High growth potential: Forecasts suggest that the global green building materials market could more than double between 2020 and 2028 (from $256 billion to $653 billion), highlighting one of several growth opportunities among the categories that GRNR invests in.
- Sustainable theme: Green buildings typically have smaller carbon footprints and less water and energy waste. These qualities may be appealing as sustainability is more widely embraced.
- Conscious approach: GRNR incorporates environmental, social, and governance (ESG) screens and follows ESG proxy voting guidelines to affect positive change alongside financial returns.
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