Water ETF Canada

Canadian Water ETFs

One of the best ways to get involved in the water industry is through an Exchange Traded Water Fund (ETF). Dan Deming, managing director of Chicago-based KKM Financial LLC, specialized in ETF portfolios, and his interest in water infrastructure was based on his own experience of the tragic consequences of drinking water pollution in Flint, Michigan, in 2014. However, while ETFs are the best way for retail investors to get involved in a broader water sector, individual water stocks can be risky, says Deming.

Exchange-traded funds (ETFs) invest in companies in the treatment and purification of water and its distribution. As a critical commodity, water ETFs are often used as defensive positions in a portfolio. But as water scarcity becomes a growing threat, it can be a crucial attacking game.

Key takeaways Water ETFs have performed better than the broader market over the past year. However, compared to other types of ETFs, the water ETF universe is relatively small, comprising only four funds traded in the US (excluding inverse leveraged ETFs and ETFs with assets of less than $50 million). Leading players Among the water ETFs are Pentair plc, American Water Works Company Inc. and Roper Technologies Inc.

The fund tracks the S ‘P Global Water Index, composed of 49 water stocks, most of which are utilities, industrial and information technology companies. In addition, the Water ETF represents the Nasdaq OMX US Water Index of 34 water stocks (most medium to large US stocks ). With assets under management of $981.5 million, PHO is the largest water ETF on the market.

Open-ended investment funds and exchange-traded funds are taken into account for population comparison. The list of water ETFs traded in the US is tagged with the ETF database. Asset Management CGW tracks the ISE Clean Edge Water Index, a modified index of the market capitalization of the 34 largest publicly-traded companies in the drinking water industry.

This table contains expense data and other descriptive information about the US-listed water ETFs tracked by the ETF Database. Includes historical returns data for the ETFs. Total cash flow (capital inflows into the ETF minus capital outflows from the ETF) for a specified period.

Investing in a water ETF is a convenient way to access the water industry through these funds. A typical water ETF invests in water utilities involved in water treatment, sewerage, pipeline construction and related equipment. Find out which fund is right for you in Best Water ETFs 2020.

Finding the reasons for the strong performance of water ETFs is complicated by the diversity of the funds themselves, she said. Water is not an asset class per se but has several asset classes, including staples, consumer goods, infrastructure, information technology, utilities, healthcare, and industry. For example, two of the companies involved in the five water ETFs traded in North America are Xylem Inc. and Danaher Corp. Xylems is classified as an industrial stock because it makes water treatment plants.

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