The growth of the world's population and increasing urbanisation: innovations are needed to make cities more efficient and more sustainable.
The background
The OECD speaks of the “century of metropolises”: a process of urbanisation has been under way for decades. Already today, more than 50 percent of the world's population lives in cities. By around 2100, this share is expected to reach 85 percent. This development brings numerous challenges. Clean air instead of smog, an efficient transport network instead of congested roads and railways. On top of that, a stable power grid, an efficient water supply and a smoothly functioning waste management system. In many cities around the world, the reality still looks different. But urban planners are increasingly turning to new solutions, tapping into the potential of digitalisation and ever-closer connectivity.
The theme in the Megatrends portfolio
With quirion's Megatrends portfolio, investors can bet on several investment themes at once, bundled across different ETFs. One of these is currently the smart cities theme. Its economic significance is likely to increase considerably given urbanisation, growing sustainability requirements and ever-advancing digitalisation.
With the Megatrends portfolio, investors can set their own priorities. And in doing so, open up additional return opportunities for themselves.
More on the investment themes New Energies, Cybersecurity, Infrastructure and Artificial Intelligence.
The smart cities investment focus
ETFs with a smart cities investment focus invest in companies whose innovations make cities more efficient, more sustainable and more socially inclusive – for example by building intelligent grids and solutions for “smart mobility”. Anyone who gets on board right at the early stage of the investment theme captures the full extent of the hoped-for growth of the companies involved. However, some of the technologies are not yet mature and carry considerable risk. That is why they are embedded in a portfolio made up of several investment themes, in order to cushion the risks.
