Global X Clean Water UCITS ETF

Issuer: Global X ETFs

Asset Class: Equity

TER: 50bps

Trading Currency: USD

Pays Income: False

Listing Date: 09 Dec 2021

Ticker: AQWA

ISIN: IE000BWKUES1

The global demand for clean water is rising relentlessly, driven by population growth, industrialisation in emerging markets, and the mounting pressures of climate change. This escalating demand is straining existing water infrastructure and resources, creating a critical need for innovative solutions and substantial investment. This investment vehicle offers targeted exposure to the companies at the forefront of addressing the world's water challenges. It seeks to capture the growth potential of firms that provide the technology, infrastructure, and services essential for water purification, treatment, and efficient distribution, positioning investors to benefit from a powerful, long-term secular growth trend.

The portfolio is composed of companies from across the entire clean water value chain. This includes established water utilities that manage public water systems, industrial firms that develop advanced filtration and treatment technologies for manufacturing and wastewater management, and engineering companies that build and maintain critical water infrastructure like pipes, pumps, and desalination plants. By investing in this diverse set of businesses, the fund provides a comprehensive approach to the water theme, balancing the stability of regulated utilities with the high-growth potential of technology and equipment providers that are enabling greater water efficiency and purity worldwide.

An investment in this area offers a compelling combination of potential financial returns and positive environmental impact. The sector is supported by strong, non-cyclical demand, as water is an essential resource for life and industry, irrespective of economic cycles. Furthermore, increasingly stringent environmental regulations globally are compelling industries and municipalities to upgrade their water management systems, creating a steady stream of business for the companies held within the portfolio. This thematic investment provides a way to align a portfolio with the vital sustainability goal of ensuring access to clean water while tapping into a resilient and expanding global market.