ETFMG Breakwave Sea Decarbonization Tech ETF (BSEA) provides investor access to a diversified set of global companies that develop technologies, manufacture equipment or provide services related to marine or ocean decarbonization.
Ocean Health: Did you know?
“By 2050 — just 28 years from now — the sea level along the Long Island Sound shoreline is projected to be 18 inches above today’s levels. By 2100 it could be as much as six and a half feet higher than current levels. Climate change-driven severe weather events, like intense hurricanes, are also projected to increase in frequency. What this all means for the densely populated coast… is that significant changes are on the way.”
-Tao Wu, Juliana Barrett. Coastal Land Use Management Methodologies under Pressure from Climate Change and Population Growth. 2022.
Portfolio News: Key Development
Wood Mckenzie estimates that offshore wind will account for nearly $120 billion in annual energy related investment spending by 2030 (6x growth from 2020 level), meaning suppliers and service companies catering to the sector stand to realize massive growth in the not-so-distant future. Nexans [France], a manufacturer and installer of subsea cables that connect offshore wind farms to land-based power grids recently won a significant contract to supply and install connections for the Empire Wind
Project off the New York/New Jersey coast – this comes just months after a similar contract announcement for another project in Connecticut/Rhode Island waters.
Nexans has been positioning itself for the offshore wind boom in the past few years, having built the first offshore cable manufacturing facility in the US, expanded its cable manufacturing facilities in Norway, and recently took delivery of a €225m cable laying vessel.
Other BSEA companies engaged in supplying technology and services to the offshore wind industry include: Cadeler [Norway], Siemens Energy [Germany], Aker Horizon [Norway], Technip Energies [France], Orsted [Denmark] and Great Lakes Dock and Dredge [USA].
Portfolio News: Significant Events
One of Aker Horizon’s [Norway] portfolio companies received approval to deploy its modular carbon capture technology to offshore oil & gas installations. CO2 emissions from oil & gas production accounted for 25% of Norway’s total emissions in 2021.
Royal Vopak [Netherlands] is in the process of preparing its Singapore and North Sea terminals to distribute ammonia for use as clean ship fuel. One of the greatest challenges to decarbonizing the ocean transportation industry is the availability and distribution of clean fuels, and Royal Vopak is providing a solution to this problem at two major shipping hubs.
Alfa Laval [Sweden] will be providing key equipment to the world’s largest green hydrogen plant, part of Saudi Arabia’s Neom project. A component of Neom is to convert the port of Duba into a regional shipping hub with a planned capacity of 9-million TEU, and the location’s proximity to the Suez Canal will make it an ideal location for ships to take on fuel.
Bloom Energy (USA) will be pairing its electrolyzers with nuclear offtake in the Great Lakes region to produce green hydrogen. Given the immense power needs to decarbonize the shipping industry, nuclear power is one of the most promising routes to achieve scale and the industry will be watching this project closely.
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 Index was created by and is owned and maintained by 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.
Fund holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security.
ETF Managers Group LLC is the investment adviser to the Fund.
The Fund is Distributed by ETFMG Financial, LLC, Member FINRA/SIPC. 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.
