First Trust Nasdaq Clean Edge Global Water UCITS ETF

Issuer: First Trust

Asset Class: Equity

TER: 60bps

Trading Currency: GBX

Pays Income: False

Listing Date: 13 Aug 2025

Ticker: H2O

ISIN: IE000Q8F0M81

This fund provides targeted exposure to the global water industry. It tracks an index composed of companies engaged in water-related businesses, covering the entire value chain. This includes companies involved in water infrastructure, such as utilities, pipe and pump manufacturers, and engineering firms, as well as those focused on water treatment technologies, equipment, and services. The portfolio is designed to capture the performance of businesses that are positioned to benefit from the increasing global demand for clean water and efficient water management solutions. By investing in this product, individuals gain access to a diversified basket of global firms leading the charge in conserving, treating, and distributing the world's most essential resource.

The investment thesis is built upon powerful, long-term secular trends. A growing global population, increasing urbanization, and industrial development are placing unprecedented strain on freshwater supplies. Simultaneously, aging infrastructure in developed nations requires significant investment for upgrades and modernization, while emerging economies are rapidly building out new systems. Climate change further exacerbates water scarcity issues through altered precipitation patterns and more frequent droughts. These factors create a compelling, non-cyclical demand for innovative water technologies and infrastructure improvements, offering a way to invest in the solutions to these critical global challenges.

This thematic fund can serve as a strategic satellite holding within a diversified portfolio, adding exposure to the sustainable and infrastructure sectors. It offers a defensive quality, as demand for water is inelastic and often regulated, providing a degree of stability during economic downturns. It also acts as a potential hedge against inflation, as infrastructure assets and utility revenues often have mechanisms to adjust for rising costs. For investors focused on environmental, social, and governance (ESG) principles, this product aligns well with impact investing goals by supporting companies that are fundamental to human health, environmental protection, and sustainable development.