The exchange-traded fund, ticker WSTE, is approximately evenly divided among the disposal of hazardous waste, non-hazardous waste and recycling sectors, according to the announcement.
The Global X Waste Management ETF tracks the Solactive Global Waste Management Index, which tracks the price movements in shares of companies which are active in the hazardous waste, non-hazardous waste and recycling industries. As of April 7, 2011, the three largest components of the index were:
- Stericycle Inc.,
- Waste Management Inc., and
- Veolia Environnement SA.
According to the firm, the world’s population growth and burgeoning middle class is creating a “steady rise in demand for energy and consumer products, with an ever-increasing need for sanitation and waste-disposal services,” and 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”. According to a press release, 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, and industrial waste. In addition, Global X says 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”.
“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,” said Global X Funds CEO Bruno del Ama.