ETF Managers Group (ETFMG) Launches World’s First “Green” Technology Shipping ETF

Rhea-AI Summary

BSEA, the ETFMG Breakwave Sea Decarbonization Tech ETF, launched today on the New York Stock Exchange, providing a unique opportunity for investors to access companies focused on reducing the maritime sector's environmental impact. The shipping industry accounts for approximately 3% of global carbon emissions, equating to about 1 billion metric tons annually. BSEA tracks the Marine Money Decarbonization Index, spotlighting businesses in cleaner propulsion, carbon capture, and offshore wind development, aiming to capitalize on the transition to ocean decarbonization.

Positive

• BSEA offers exposure to innovative companies in ocean decarbonization.
• Targets a growing market as shipping emissions face increased scrutiny.
• Tracks a newly established index, potentially leading to significant growth.

Negative

• Investing in BSEA involves risks, including high volatility and limited track record.
• Index provider Maritime Transformation Partners has limited experience as an index provider.

BSEA is the First ETF to Provide Investors Exposure to the Innovative Companies Actively Developing "Green" Technologies Powering the Global Shipping Industry

SUMMIT, N.J.--(BUSINESS WIRE)-- ETF Managers Group LLC (ETFMG®), leading exchange-traded fund issuer, announced that the ETFMG Breakwave Sea Decarbonization Tech ETF (NYSE Arca: BSEA) will begin trading today on the New York Stock Exchange. BSEA is designed to provide investors access to a diversified set of global companies involved in actively reducing the environmental impact of the global maritime sector, including those that develop technologies, manufacture equipment or provide services related to marine or ocean decarbonization.

“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.

The shipping industry accounts for roughly 3% of global carbon emissions, around 1 billion metric tons of greenhouse gases emitted yearly.¹ Without further action, shipping emissions are expected to surge. BSEA provides exposure to dynamic and pioneering companies involved in developing and commercializing technologies that could benefit from the growth of new sector initiatives aiming to combat the environmental impact of the global maritime sector. This includes companies involved in cleaner propulsion (including alternative fuels, batteries and fuel cells), carbon capture technologies and offshore wind development.

“We are excited to bring yet another first to the market with BSEA, a product that answers investor demand for access to these disruptive technology companies at the forefront of ocean decarbonization,” said Sam Masucci, Founder and CEO of ETFMG.

“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.

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

“For more than 30 years, Marine Money’s mission has been to facilitate and strengthen the relationship between investors and the maritime industry. As the industry embarks on a multi-decade process of mandated decarbonization, the Marine Money Decarbonization Index will help investors participate in this significant opportunity. The launching of the Index marks the beginning of an important journey. We anticipate that the Index will evolve as more companies go public and existing companies grow and satisfy the Index inclusion requirements,” said Matt McCleery, President of Marine Money.

For more information, visit: etfmg.com/BSEA.

About ETFMG®

ETFMG is a provider of exchange-traded funds (ETFs), founded in 2014 with a vision of developing innovative thematic ETFs that provide investors unique exposure to new markets. Today, the ETFMG fund line up provides access to a diverse collection of global themes and is comprised of 75% first-to-market products. We turn portfolio management strategies into successful ETFs by partnering with market segment experts to bring long-term growth opportunities to investors. ETFMG funds are proof as to the power of the ETF wrapper and that thematic products can have a place in investors’ portfolios. To learn more about ETFMG and our portfolio of exchange traded funds please visit www.etfmg.com.

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by calling 1-844-ETF-MGRS (1-844-383-6477), or by visiting www.etfmg.com/BSEA. Please read the prospectus carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Investments in smaller companies tend to have limited liquidity and greater price volatility than large capitalization companies. The Fund’s return may not match or achieve a high degree of correlation with the return of the Marine Money Decarbonization Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the Index. Diversification does not guarantee a profit, nor does it protect against a loss in a declining market.

The underlying Index’s decarbonization criteria, and thus the Fund’s investment strategy, limits the types and number of investment opportunities available to the Fund, and, as a result, the Fund’s returns may be lower than other funds that do not seek to invest in companies based on decarbonization criteria. In addition, decarbonization investing may affect the Fund’s exposure to certain companies or industries and the Fund will forgo certain investment opportunities that are screened out of the decarbonization methodology. Finally, some of the companies are developing new technologies that have not yet achieved full commercialization.

The Fund is a recently organized investment company with limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision. There can be no assurance that the Fund will grow to or maintain an economically viable size.

The Index was created by and is owned and maintained by the with Maritime Transformation Partners, LLC (the “Index Provider”), which has not previously been an index provider, which may create additional risks for investing in the Fund.

ETF Managers Group LLC is the investment adviser to the Fund.

The Fund is distributed by ETFMG Financial LLC. ETF Managers Group LLC and ETFMG Financial LLC are wholly owned subsidiaries of Exchange Traded Managers Group LLC (collectively, “ETFMG”). ETFMG is not affiliated with Maritime Transformation Partners, LLC or Breakwave Advisors LLC.

The Fund is intended to be made available only to U.S. residents. Under no circumstances is any information provided on this website intended for distribution to or use by, or to be an offer to sell to or solicitation of an offer to buy the Fund or any investment product or service of, any person or entity in any jurisdiction or country, other than the United States, where such distribution, use, offer or solicitation would subject the Fund or its affiliates to any registration requirement or be unlawful under the securities laws of that jurisdiction or country.

Sources:

1. International Maritime Organization (IMO)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210921005334/en/

Deborah Kostroun

Zito Partners

(201) 403-8185

deborah@zitopartners.com

Source: ETF Managers Group LLC

FAQ

What is the ETFMG Breakwave Sea Decarbonization Tech ETF (BSEA)?

BSEA is an ETF that provides exposure to companies involved in reducing the environmental impact of the shipping industry.

When did BSEA begin trading on the New York Stock Exchange?

BSEA began trading on the New York Stock Exchange on its launch date.

What types of companies are included in the BSEA ETF?

BSEA includes companies involved in cleaner propulsion, carbon capture technologies, and offshore wind development.

What is the Marine Money Decarbonization Index that BSEA tracks?

The Marine Money Decarbonization Index is an index that captures companies focused on ocean decarbonization.

What are the risks associated with investing in BSEA?

Risks include high volatility, limited operating history, and potential tracking errors related to the index.