Smug's next stop on the profile bandwagon is an industry that definitely does not get its due accord - waste and recycling. Waste management, like water treatment, is an inevitable need of every civilization. In that way, when taken as a whole, waste should tend to act more like a commodity than equity. I'm still watching for the moment you can readily buy and sell futures contracts on recycled metals (especially in ETF fashion), but for now, we can at least take solace in Market Vectors' Environmental Services ETF:
Ticker: EVX
Inception: October 10, 2006
Asset Type: ETF
Markets: Global
Smug Category: Waste
Included in Smug Asset Pool?: Yes
Returns: YTD 2.30%
Expense Ratio: 0.55%
Total Market Cap: 42M
Annual Turnover: 3%
Current Yield: 1.03%
With a moderate expense ratio, EVX offers exposure to what Smug believes is one of the unaccounted for basic needs investments. Along with food, water, clothes, and a roof over our heads, it is inevitable that we will produce waste. The long term prospects are astounding as populations soar and growth in China and elsewhere abroad booms, the need for increasingly efficient and intelligent waste management is tantamount. Along with water, we consider waste a commodity and expect to move with lower correlations to the overall market as the track record increases.
All in all, consider it as exposure to a relatively obscure but well positioned sector. And be smug, invest sustainably.
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