Invest in the Water Industry Sector With ETFs
List of Water ETFs
There are quite a few reasons to invest in water — gain exposure to the water industry, hedge water-related investments, or even diversify a portfolio. However, unless you have a specific water company or commodity to target, a water ETF (or ETN) may be the way to go instead.
With a water ETF, you can gain access to the water sector without having to corner the market on individual company stocks. Nor do you have to battle an index to fill your basket at certain prices.
With an ETF, you can track a water index or gain access to water companies with just one transaction.
By adding an ETF or ETN to your investing strategy you can not only complete your investing goals but at the same time gain all of the advantages of ETFs, like saving money on both your commissions and your tax return.
If you think your water investing strategy should include ETFs (or ETNs), then you definitely want to at least explore these funds. However, make sure you research each asset and conduct your due diligence before you make any trade. Always consult your broker or a financial professional if necessary. Investing has risk so understand your risk tolerance and how any investment will impact your bottom line.
To help you with that research here is a list of the potential water ETFs on the market as of today.
List of Water ETFs
CGW - Guggenheim S&P Global Water Index ETF: Guggenheim S&P Global Water Index ETF (CGW) seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of the S&P Global Water Index. The fund invests in companies across all capitalizations.
FIW - First Trust ISE Water Index Fund: The First Trust ISE Water Index Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the ISE Water Index.
PHO - Power Shares Water Resources Portfolio ETF: The PowerShares Water Resources Portfolio (Fund) is based on the NASDAQ OMX US Water Index. The Fund generally will invest at least 90 percent of its total assets in common stocks and American depositary receipts (ADRs) of companies in the water industry that comprise the Underlying Index. The Underlying Index seeks to track the performance of US exchange-listed companies that create products designed to conserve and purify water for homes, businesses, and industries. The Fund and the Index are rebalanced quarterly and reconstituted annually in April.
PIO - PowerShares Global Water Portfolio ETF: The PowerShares Global Water Portfolio (Fund) is based on the NASDAQ OMX Global Water Index. The Fund generally will invest at least 90 percent of its total assets in companies listed on a global exchange that create products designed to conserve and purify water for homes, businesses, and industries. The Fund and the Index are rebalanced quarterly and reconstituted annually in April.
WTRX - Summit Water Infrastructure Multifactor Exchange Traded Fund: The Summit Water Infrastructure Multifactor Exchange Traded Fund (NYSE Arca: WTRX) delivers exposure to the Summit Zacks Global Water Index (NYSE: ZAXWTRX), which tracks the performance of publicly listed U.S. and international companies with a significant portion of their business activities dedicated to the global water industry. The Index utilizes a transparent, rules-based methodology to incorporate fundamental factors that have been strong historical indicators of the long-term performance of water equities. The Index is comprised of approximately 30 to 50 equities selected from a stringently defined universe of global water companies and is rebalanced on a quarterly basis to incorporate the latest financial data into the screening process. The Index methodology was designed by Summit Water Capital Advisors, the index creator, in conjunction with Zacks Index Services, the index provider, through rigorous testing to determine the Three-Factor Model most relevant to company valuation and profitability in the global water industry.