The Circular Economy on the rise

One of the most interesting economic topics in recent years has been the Circular Economy, i.e., the production and consumption model that aims to extend the life cycle of products and thereby reduce waste production.

The Nasdaq OMX Green Economy index, after having fallen towards the end of last October to below 2,465 points, began a rapid ascent and came close to the important psychological threshold of 3,000 points.ocks.

The overcoming of this last level may trigger a further extension with a first target in the 3,060-3,063 points area.

The breakout of this area will then open up further room for growth, both in a short and medium-term perspective.

However, the holding of the graphic support located in the 2,750-2,735 points area is important, as it may favour the construction of a solid accumulation base, an indispensable premise for starting a solid bullish movement.

The following ETFs can be used to invest in this sector:

Bnp Paribas Easy ECPI Circular Economy, ISIN LU1953136527. This ETF has €645m in assets under management and replicates the ECPI Circular Economy Leaders Equity index (linked to the performance of 50 global equities operating in the circular economy). The ETF, which provides a total physical replication of the underlying, adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.30 per cent per annum.

VanEck Circular Economy, ISIN IE0001J5A2T9. It is an ETF with €6m of assets under management, which provides for the total physical replication of the underlying (represented by the MVIS Global Circular Economy ESG index) and which adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.40% per annum.

Xtrackers MSCI Global Circular Economy, ISIN IE000Y6ZXZ48. This ETF has EUR 4m in assets under management and provides for full physical replication of the underlying (represented by the MSCI ACWI IMI SDG 12 Responsible Consumption and Production Select index). The ETF adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.35% per annum.

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