Global X Clean Water ETF (AQWA)

Overview

The Global X Clean Water ETF (AQWA) seeks to invest in companies involved in the water industry, focusing on those that advance the provision of clean water through purification, efficient distribution, and sustainable management. It aims to capture the growth potential within the global water sector.

Reputation and Reliability

Global X ETFs is a well-established ETF provider known for its thematic and innovative investment strategies, with a solid track record of delivering diverse and specialized ETF products.

Management Expertise

Global X's management team possesses extensive experience in developing and managing thematic ETFs, demonstrating expertise in identifying and capitalizing on long-term investment trends.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Clean Water Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Solactive Global Clean Water Index, which is designed to provide exposure to companies actively involved in the clean water industry. The index uses a rules-based methodology to select and weight companies.

Composition The ETF primarily holds stocks of companies operating in the water utilities, water infrastructure, water treatment, and water technology sectors.

Market Share: AQWA holds a significant market share within the clean water ETF sector, though precise figures fluctuate.

Total Net Assets (AUM): 106.49

Key Competitors

• Invesco Water Resources ETF (PHO)
• First Trust Water ETF (FIW)
• Eaton Vance Water NextShares (EVXX)

Competitive Landscape

The clean water ETF market is competitive, with several established players. AQWA competes based on its thematic focus and global exposure, while other ETFs might offer different index methodologies or regional concentrations. AQWA has the disadvantage of being smaller in size. Advantages include its global focus and strong thematic alignment with the clean water trend.

Historical Performance: Historical performance data needs to be pulled from live resources. This will vary depending on date pulled.

Benchmark Comparison: Benchmark comparisons require up-to-date data and are subject to change.

Expense Ratio: 0.5

Average Trading Volume

AQWA's average trading volume indicates moderate liquidity, which is generally adequate for most investors.

Bid-Ask Spread

The bid-ask spread for AQWA is typically reasonable, reflecting its trading volume and market interest.

Market Environment Factors

AQWA's performance is influenced by factors such as global water scarcity, infrastructure investment, regulatory policies, and technological advancements in water treatment and distribution.

Growth Trajectory

AQWA's growth trajectory is tied to increasing awareness of water scarcity and sustainability, driving investment in clean water technologies and infrastructure. The ETF's strategy and holdings remain relatively consistent.

Competitive Edge

AQWA's competitive edge lies in its targeted exposure to the global clean water industry, aligning with a critical and growing need for sustainable water solutions. Its focus on companies involved in purification, distribution, and management provides a comprehensive approach. This targeted exposure differentiates it from broader water-related ETFs. The fund's thematic approach may attract investors specifically interested in environmental and social governance (ESG) factors.

Volatility

AQWA's volatility is moderate, reflecting the inherent risks of investing in equity markets and sector-specific companies.

Market Risk

Specific risks include regulatory changes, technological obsolescence, fluctuations in commodity prices (e.g., chemicals used in water treatment), and economic cycles affecting infrastructure investment.

Ideal Investor Profile

The ideal investor for AQWA is one seeking long-term growth in the clean water sector, with a moderate risk tolerance and an interest in sustainable or ESG-focused investments.

Market Risk

AQWA is suitable for long-term investors who believe in the growth potential of the clean water industry and are willing to accept moderate market risk.

The Global X Clean Water ETF (AQWA) offers targeted exposure to companies involved in the global clean water industry. AQWA's performance is influenced by global awareness on sustainable practices, demand, and regulatory policies. The ETF is ideal for investors seeking long-term growth opportunities in the clean water sector, with a moderate risk tolerance. The Global X issuer is generally reliable with an established track record. Competitors include PHO and FIW.

Data Sources:

• Global X ETFs website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market data is subject to change. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.