When it comes to diversifying a portfolio, investing in the U.S. ocean economy – often referred to as the “blue economy” – presents a lucrative opportunity. The U.S. National Ocean Service has calculated that businesses dependent on the U.S. oceans contribute a whopping $282 billion in economic value. Moreover, nearly three million individuals are employed by these ocean-dependent businesses. Notably, marine transit serves a critical role in 76% of U.S. trade.
The Bounty of the Blue
Within the expansive blue economy lie vast opportunities for value generation. Investors and fund managers are increasingly drawn to exploring avenues to leverage the growing benefits. A recent report from Rockefeller Asset Management highlights the broad spectrum of industries intertwined with the ocean. This diverse universe includes marine transportation, port infrastructure, offshore renewable energy, the global seafood complex, and even enterprises promoting the circular economy.
The KraneShares Rockefeller Ocean Engagement ETF (NYSE Arca: KSEA) stands out as an actively managed fund offering exposure to the advantages of the blue economy. The fund strategically invests in companies directly involved with the ocean and its resources, such as commercial fishing, waste management, offshore engineering, and trade infrastructure.
KSEA, with a global investment focus, is benchmarked against the MSCI All Country World Index, encompassing large and mid-cap companies from both developed and emerging markets. Operating with a net expense ratio of 0.86%, the fund heralded its debut in September 2023 and has seen a commendable 4.33% rise in the past three months. As of now, KSEA manages assets worth $2.7 million.
A Wealth of Expertise
Rockefeller Asset Management, serving as the sub-adviser for KSEA, brings a wealth of experience garnered over several decades in global markets and ocean conservation endeavors. The profound knowledge of the blue economy possessed by Rockefeller Asset Management plays a pivotal role in shaping the fund portfolio decisions.
Aside from KSEA, KraneShares offers a diverse range of investments linked 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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The viewpoints and thoughts expressed here represent those of the author and may not necessarily align with those of Nasdaq, Inc.
