Several Opportunities to Consider The number of sectors and companies in the blue economy is so vast that the best way for investors to play it is through one or more of the exchange-traded funds (ETFs) focused on it. Today, there are no blue economy ETFs that trade on U.S. indexes. However, there are a number of European ETFs that investors should have access to. The first one I like is the BNP Paribas ECPI Global ESG Blue Economy ETF (France: BLUE). This ETF tracks the performance of the Global ESG Blue Economy Index, which is composed of companies involved in the blue economy. The second is the Lyxor World Water UCITS ETF (London: WATC), an ETF that tracks the World Water CW Total Return Index. It invests in the 30 largest companies in the world that get at least 40% of their revenues from water-related activities. These include companies involved in infrastructure, utilities and water treatment. The size of the ETF has doubled during the last three years. And as of June 2021, it was valued at 1.02 billion British pounds, or about $1.38 billion. Some investors may be interested in individual companies with a focus on the blue economy. There are three worth considering that trade on U.S. exchanges. The United Utilities Group PLC (OTC: UU.L) is focused on reducing water leakages by 15% and water pollution by 20%. Xylem (NYSE: XYL) uses artificial intelligence to reduce pipe failure costs by 80%. And finally, Essential Utilities (NYSE: WTRG) is a leader in water desalinization. As the blue economy becomes greener, interest in these companies and others like them will only increase. Investors might want to position their portfolios to take advantage of the changing blue economy sooner rather than later. Good investing, Dave P.S. Chief Trends Strategist Matthew Carr has found what he is calling the "Ultimate Growth Stock." This stock's net income jumped from $121 million in 2020 to $1.54 billion over the last 12 months. That's 1,165% growth in a year... faster growth than high-flying tech stocks like Netflix (Nasdaq: NFLX), Amazon (Nasdaq: AMZN) and Apple (Nasdaq: AAPL) have seen! Yet it trades for less than $10. Get the details here. |
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