Want to add some garbage to your clients’ portfolios? A new ETF called the Global X Waste Management ETF (WSTE) invests in companies involved in the disposal of hazardous waste, non-hazardous waste and recycling sectors.
“The Waste Management ETF (WSTE) provides relatively easy access to a global industry that continues to grow rapidly as the world’s population and individual incomes expand along with the need to manage waste and recycle resources,” says Global X Funds CEO Bruno del Ama.
The proper disposal of hazardous and non-hazardous waste is a critical and growing aspect of many industries, especially as corporations are held more accountable for the waste they produce.
Investors in WSTE may stand to benefit from mandatory safety standards and environmental regulations imposed on these companies, which enforce the removal of pesticides, petrochemicals, nuclear materials and industrial waste. In addition, the process of recycling is critical for managing available resources and controlling the costs of basic materials. If the world’s appetite for raw materials continues to grow, recycling may stand to become increasingly cost effective and a more viable substitute for primary production.
WSTE is linked to the Solactive Global Waste Management Index, and as of mid-April the three largest components of the index were Stericycle, Waste Management and Veolia Environnement.
At the end of March, New York -based Global X Funds had $1.7 billion in managed assets.