As of February 2025, we identified 73 open-end funds and ETFs focused on the water theme, including 13 in the US and 60 in Europe, representing a total of $41 billion in assets under management. This universe has grown by almost 70% in the past five years.
The article from Morningstar discusses the growing importance of water as an investment theme due to increasing global water scarcity, pollution, and the need for infrastructure upgrades. It highlights 30 leading water-focused funds and stocks in the U.S. and Europe, which are categorized into three main types: those investing in water utilities, companies providing water treatment and technology solutions, and firms involved in water infrastructure. The piece notes that while water utilities offer stability due to their essential service, they might not provide high growth. Conversely, companies in water technology and infrastructure could offer higher growth potential but come with increased risk. The article also touches on the ESG (Environmental, Social, and Governance) considerations, pointing out that water investments can align with sustainability goals by addressing water conservation, sanitation, and access to clean water. It emphasizes the dual benefit of potential financial returns and positive environmental impact, making water investments an attractive option for those looking to integrate sustainability into their investment strategy.
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