Top water ETFs to buy now
These funds are based on new indexes.
By Chuck Epstein, InvestorPlace.com
Exchange-traded funds are the newest investment instrument to access the water industry because they are based on some new indexes.
Here are three ETFs that access all aspects of the global water industry:
Inception: September 2005
Underlying Index: Palisades Water Index
Investment Goal: Invests 90% of assets in common stocks and ADRs which comprise the index. The modified equal–weighted portfolio is re-balanced and re-constituted quarterly.
The ETF is based on the Palisades Water Index, which is comprised of a group of 37 companies, five of them foreign, that trade in the U.S. market. (The foreign stocks trade as American Depositary Receipts.) The fund will normally invest at least 90% of its total assets in ADRs and common stocks that comprise the index. The index comprises the sector's most widely held companies. At least 80% of them get at least 50% of their revenue from water. The modified equal weighted portfolio is rebalanced and reconstituted quarterly.
Inception: June 2007
Underlying Index: Palisades Global Water Index
Investment Goal: Invests at least 90% of total assets in securities which comprise the Index and ADRs that comprise the index. Invests in companies engaged in the potable water business, technology and treatment of water and services related to global water consumption.
Inception: May 2007
Underlying Index: ISE Water Index
Investment Goal: To seek investment results that correspond generally to the price and yield, before fees and expenses of the Index. The Index is modified and market capitalization-weighted comprised of exchange-listed companies that derive a substantial portion of their revenues from the potable and wastewater industry. The index begins by establishing the total population of stocks in the potable and wastewater industry and eliminates stocks which do not meet the Index’s baseline eligibility requirements. To meet index eligibility, a stock must satisfy market capitalization, liquidity and weighting concentration requirements. The index then selects the top 36 stocks in the industry by market capitalization. It is rebalanced on a semi-annual basis.
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