It’s the 52nd Earth Day for the U.S. The day was created to address environmental concerns when there were no regulatory bodies or laws in effect. This one seems to carry that same sense of urgency and levity as the very first Earth Day did.
Earth Day was started on April 22, 1970, to bring environmental issues to the forefront and force them onto the national agenda, according to the EPA. Now we find ourselves staring down the need for ever-tightening regulations and commitments both within the U.S. and globally to limit climate change and curtail global warming to as close to 1.5°C as possible.
Investment into the decarbonization transition is expected to soar over the coming years, and IndexIQ offers two funds that each target different aspects of emissions reduction while donating portions of their proceeds to causes working to improve ecosystems.
The Transportation Industry and Wildlife
The IQ Cleaner Transport ETF (CLNR) provides an investment opportunity within the emissions transition of the transportation sector. CLNR seeks to provide investors with exposure to global companies focused on clean energy resources, transportation equipment and services, technology that makes transportation more efficient, and infrastructure components.
CLNR has a dual impact in that it has aligned with the National Wildlife Federation and donates a portion of its management fees to the organization. The NWF has been working for over 80 years to protect, restore, and manage habitats and has helped to bring many species back from the edge of extinction, including elk, deer, eagles, bighorn sheep, and whales, per the website.
Through investment in CLNR, investors help fund critical work to help save ecosystems and wildlife through the NWF’s hands-on programs such as securing clean water for both wildlife and people and working with indigenous populations to preserve vital ecosystems. The NWF also engages in community outreach efforts that include the Early Childhood Health Outdoors program, which provides safe outdoor play spaces for children; college programs to reduce waste; and partnerships with over 500 cities to create natural, native spaces for wildlife.
The Shipping Industry and Oceans
The IQ Clean Oceans ETF (OCEN) invests in the blue economy, which is estimated to be worth roughly $2.5 trillion annually and is anticipated to grow twice as fast as the mainstream economy by 2030. OCEN seeks to offer exposure to companies involved in pollution reduction, carbon efficiency, clean energy, sustainable oceans, or cleaner shipping. These companies offer products or services that work to protect the oceans or promote cleaner oceans, use products or services that accomplish those goals, or else engage in activities that have ocean-related sustainability goals.
OCEN was developed in alignment with Oceana, to which it contributes a portion of its management profits. Oceana is the largest international advocacy organization to focus on ocean conservation. To date, Oceana has protected over 4.5 million square miles of ocean and the aquatic life that lives within it, per its website.
Oceana has campaigned successfully to have endangered species such as the North Atlantic shortfin mako shark removed from fishing lists, has worked with Google and Skytruth to create a platform that tracks industrial fishing practices (Global Fishing Watch), and has worked with governments around the world to protect marine life, ecosystems, and the people that rely on them for a living.
Both funds carry an expense ratio of 0.45%.
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