Water ETF

Exchange Traded Fund

An ETF is a passive managed fund with no maturity limit that almost precisely tracks an underlying index. Thus, the performance of the ETF is nearly parallel with the performance of the given index. The purpose of an ETF is primarily to offer the investor the opportunity to participate in the development of an entire index just by purchasing a single security. Consequently, an ETF ensures the investors a high level of diversification in their portfolios. The difference between an ETF and a traditional mutual fund is that the ETF does not attempt to achieve a higher return than that of the underlying index. The ETF tracks the performance of the index. If the index increases by 9%, the ETF also rises by 9%. Accordingly, fees are significantly lower in the ETF since changes in the ETF portfolio are not made on an ongoing basis and there is no active fund manager who must be paid. Concerning a mutual fund, active fund management takes place on a regular basis which causes higher costs for the investors. Securities can be bought and sold at any time. This is not the case with an ETF. However, if changes occur in the underlying index, the same changes take place in the ETF.

Water ETFs in 2021

1. First Trust Water

Symbol: FIW
Launching Date: 5/11/2007
Total Expense Ratio: 0,55 %
Index: ISE Clean Edge Water Index
Focus: US water companies; water technology and technic, water utility

2. Guggenheim S&P Global Water

Symbol: CGW
Launching Date: 05/14/07
Total Expense Ratio: 0,6 %
Index: S&P Global Water Index
Focus: Water utility; water infrastructure and equipment

3. PowerShares Water Resources

Symbol: PHO
Launching Date: 12/06/05
Total Expense Ratio: 0,62 %
Index: NASDAQ OMX US Water Index
Focus: US water technology and technic companies

4. Tortoise Water Fund

Symbol: TBLU
Launching Date: 02/15/17
Total Expense Ratio: 0,40 %
Index: Tortoise Water Index
Focus: Water infrastructure and water utilities in North America