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As water plays a major role in the evolution of human life and is also a key element of economic growth, let’s dedicate Mar 22 to safe and sufficient water. The conservation and purification of water used in homes, businesses and industries have become an investment theme and potentially a lucrative strategy.
This is especially true as the demand for clean water and effective wastewater management has been increasing with ever-expanding population, urbanization and agricultural needs. On the other hand, scarcity is also on the rise, given climate change, pollution and poor sanitation. In particular, climate change has led to extreme weather patterns, including droughts and floods, which impact water availability and quality.
As the demand for clean water continues to rise, investing in water has gained immense attention in recent years. A number of companies and governments across the globe have increased their spending on water and wastewater treatment equipment. This trend has compelled investors to consider water-related investments that can range from utilities that supply water to consumers to companies that treat and manage wastewater to firms involved in water infrastructure and technology that seek to improve water efficiency and quality. Further, various innovations in the sector present significant investment opportunities (see: all the Industrials ETFs here).
According to a report published by Zion Market Research, the global water market size was valued at $302.8 billion in 2022 and is expected to witness a CAGR of 4.51% to reach $430.9 billion by the end of 2030.
Scarcity and the ongoing investments to secure water pave the way for future growth, resulting in the entry of this precious commodity. Given this, the water industry seems an excellent investment option to tap the growth. We have highlighted some ETFs that could be excellent picks.
Invesco Water Resources ETF provides exposure to companies that create products designed to conserve and purify water for homes, businesses and industries. It tracks the Nasdaq OMX US Water index and holds 41 securities in the basket. Invesco Water Resources ETF has $2 billion in AUM and charges 60 bps a year in fees per year. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
First Trust Water ETF follows the ISE Clean Edge Water Index, which is a modified market capitalization-weighted index comprising exchange-listed companies that derive a substantial portion of their revenues from the potable and wastewater industry. Holding 36 stocks, it has amassed $1.6 billion in its asset base while charging investors 53 bps in annual fees. FIW has a Zacks ETF Rank #2 with a Medium risk outlook.
Invesco S&P Global Water Index ETF provides global exposure to developed market securities, including water utilities, infrastructure, equipment, instruments and materials, by tracking the S&P Global Water Index. It holds 56 stocks in its basket with AUM of $971.1 million and has an expense ratio of 0.57%. Invesco S&P Global Water Index ETF has a Zacks ETF Rank #3 (Hold) with a Low risk outlook.
Invesco Global Water ETF offers exposure to the companies listed on a global exchange that create products designed to conserve and purify water for homes, businesses and industries. It tracks the Nasdaq OMX Global Water Index, holding 47 stocks in its basket. Invesco Global Water ETF has accumulated $290.7 million in its asset base while charging 75 bps in annual fees.
Ecofin Global Water ESG Fund follows the Ecofin Global Water ESG Net Total Return Index, which comprises companies across the globe and throughout the water cycle that seem positioned to benefit from the pursuit of solving the water supply/demand imbalance. It holds 42 stocks in its basket and has gathered $52.9 million in its asset base and charges 40 bps in annual fees.
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Dive Into These ETFs on World Water Day
As water plays a major role in the evolution of human life and is also a key element of economic growth, let’s dedicate Mar 22 to safe and sufficient water. The conservation and purification of water used in homes, businesses and industries have become an investment theme and potentially a lucrative strategy.
This is especially true as the demand for clean water and effective wastewater management has been increasing with ever-expanding population, urbanization and agricultural needs. On the other hand, scarcity is also on the rise, given climate change, pollution and poor sanitation. In particular, climate change has led to extreme weather patterns, including droughts and floods, which impact water availability and quality.
As the demand for clean water continues to rise, investing in water has gained immense attention in recent years. A number of companies and governments across the globe have increased their spending on water and wastewater treatment equipment. This trend has compelled investors to consider water-related investments that can range from utilities that supply water to consumers to companies that treat and manage wastewater to firms involved in water infrastructure and technology that seek to improve water efficiency and quality. Further, various innovations in the sector present significant investment opportunities (see: all the Industrials ETFs here).
According to a report published by Zion Market Research, the global water market size was valued at $302.8 billion in 2022 and is expected to witness a CAGR of 4.51% to reach $430.9 billion by the end of 2030.
Scarcity and the ongoing investments to secure water pave the way for future growth, resulting in the entry of this precious commodity. Given this, the water industry seems an excellent investment option to tap the growth. We have highlighted some ETFs that could be excellent picks.
Invesco Water Resources ETF (PHO - Free Report)
Invesco Water Resources ETF provides exposure to companies that create products designed to conserve and purify water for homes, businesses and industries. It tracks the Nasdaq OMX US Water index and holds 41 securities in the basket. Invesco Water Resources ETF has $2 billion in AUM and charges 60 bps a year in fees per year. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
First Trust Water ETF (FIW - Free Report)
First Trust Water ETF follows the ISE Clean Edge Water Index, which is a modified market capitalization-weighted index comprising exchange-listed companies that derive a substantial portion of their revenues from the potable and wastewater industry. Holding 36 stocks, it has amassed $1.6 billion in its asset base while charging investors 53 bps in annual fees. FIW has a Zacks ETF Rank #2 with a Medium risk outlook.
Invesco S&P Global Water Index ETF (CGW - Free Report)
Invesco S&P Global Water Index ETF provides global exposure to developed market securities, including water utilities, infrastructure, equipment, instruments and materials, by tracking the S&P Global Water Index. It holds 56 stocks in its basket with AUM of $971.1 million and has an expense ratio of 0.57%. Invesco S&P Global Water Index ETF has a Zacks ETF Rank #3 (Hold) with a Low risk outlook.
Invesco Global Water ETF (PIO - Free Report)
Invesco Global Water ETF offers exposure to the companies listed on a global exchange that create products designed to conserve and purify water for homes, businesses and industries. It tracks the Nasdaq OMX Global Water Index, holding 47 stocks in its basket. Invesco Global Water ETF has accumulated $290.7 million in its asset base while charging 75 bps in annual fees.
Ecofin Global Water ESG Fund (EBLU - Free Report)
Ecofin Global Water ESG Fund follows the Ecofin Global Water ESG Net Total Return Index, which comprises companies across the globe and throughout the water cycle that seem positioned to benefit from the pursuit of solving the water supply/demand imbalance. It holds 42 stocks in its basket and has gathered $52.9 million in its asset base and charges 40 bps in annual fees.