Xtrackers MSCI Global SDG 6 Clean Water & Sanitation UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 35bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 13 Feb 2023 |
| Ticker: SDG6 |
| ISIN: IE0007WJ6B10 |
Access to clean water and sanitation is a fundamental human need and a critical component of sustainable development, as highlighted by the United Nations' Sustainable Development Goal 6. However, a combination of factors including rapid population growth, increasing industrial demand, pollution, and the impacts of climate change are placing unprecedented stress on the world's freshwater resources. This growing scarcity creates a compelling, long-term structural growth story for companies providing innovative solutions to manage, treat, and conserve water, making it a vital sector for the future of both society and the global economy.
This investment vehicle offers targeted exposure to this crucial theme by tracking a portfolio of global companies whose business operations are substantially aligned with ensuring the availability and sustainable management of water and sanitation. The underlying portfolio includes firms from across the water value chain, encompassing water utilities that supply and treat water, technology companies that develop advanced filtration and purification systems, and industrial firms that manufacture the essential infrastructure like pipes, pumps, and meters. This approach allows investors to participate in the growth of a diverse set of businesses poised to benefit from increased global investment in water infrastructure and technology.
By investing in this fund, individuals can align their capital with a powerful sustainability trend while gaining exposure to a defensive, non-cyclical industry with significant long-term growth potential. The demand for clean water is inelastic and set to rise, driven by undeniable demographic and environmental trends. This makes the fund a suitable component for a diversified portfolio, offering the potential for financial returns while contributing to the resolution of one of the world's most pressing environmental and social challenges.
