Alternative Investments/ESG: ETFMG Launches Maritime Decarbonization ETF

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The Breakwave Sea Decarbonization Tech ETF (BSEA) will debut today on the New York Stock Exchange.

ETF Managers Group, which created the highly successful Breakwave Dry Bulk Shipping ETF (NYSE: BDRY), has launched a sister ETF – the ETFMG Breakwave Sea Decarbonization Tech ETF (BSEA). The new ETF will give investors exposure to global companies active in fields related to marine or ocean decarbonization. (Splash247)

Scope of the market

The maritime decarbonization space is a global market that will receive investments from all over the world due to the global nature of the shipping industry.

According to ETFMG, the maritime industry currently accounts for ~3% of global carbon emissions and faces rising regulatory pressure to curtail them.

As of early 2021, the total cost of modernizing the global commercial fleet to reach 2050 emissions targets was estimated to be $1.4-$1.9 trillion.

Given the scope, the companies active in the space could be huge beneficiaries of maritime decarbonization imperatives.

ETFMG Breakwave Sea Decarbonization Tech ETF (BSEA)

BSEA tracks the Marine Money Decarbonization Index (MMDI). The index was developed and is maintained by Maritime Transformation Partners, a collaboration between Marine Money, Breakwave Advisors, and Sea/Switch Partners.

The index is built up of 50 stocks with a minimum market capitalization of $100 million.

The ETF has an expense ratio of 0.75%.

Some stocks that feature in that index include ABB Ltd. (NYSE: ABB), Bloom Energy Corp. (NYSE: BE), Great Lakes Dredge & Dock Corp. (NASDAQ: GLDD), New Fortress Energy (NASDAQ: NFE), and Methanex Corp. (NASDAQ: MEOH).

“BSEA is a key step towards capitalizing on the ocean decarbonization transition by providing investors with an easy way to track the performance of publicly traded sector leaders backed by comprehensive research and analytics,” said John Kartsonas, founder and managing partner of Breakwave Advisors.

“Shipping will always remain a major part of the global economy, while the decarbonization transition will provide considerable investment opportunities that are still in their infancy,” said Hal Malone, principal of Sea/Switch Partners.

Related Story: Infinity Maritime Names Four Shipbrokers For Its Alternative Ship Finance Platform

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