This article was written in English on 02.04.2021, translated and published on this site.
“Humanity faces a growing challenge, created by an excess of water in some regions and scarcity of water in other regions.”
“Currently, 20% of the world’s population … cannot safely access drinking water, and about 2.6 billion people live far from basic sanitation … More than 4 billion people, almost half of the world’s population, by 2050 have chronic water problems. It is expected to live in countries with scarcity. “
In other words, the uneven distribution of water globally has made clean drinking water a valuable commodity in some parts of the world. As a result, the economic dimension of water has also gained importance in recent years.
1. First Trust Water ETF
- Current Price: $ 78.93
- 52-Week Range: $ 44.00 – $ 78.99
- Dividend Income: %0,50
- Cost Rate: %0,54
FIW, with 36 shares, follows the ISE Clean Edge Water Index. The top 10 companies make up about 40% of the fund. On a sectoral basis, industrial products and services take the first place with 56.82%, followed by public services (21.58%) and health services (11.56%).
The fund has risen over 8% so far in 2021 and reached a record high on April 1. The price-earnings and price-book value ratios for the last 12 months point to an extremely high valuation of 35.52 and 3.92 respectively.
Many of the names in FIW will publish their quarterly results in the coming weeks. Therefore, volatility and profit sales are likely to be seen. A potential decline towards the $ 75 level or below will offer a better margin of safety.
2. Invesco S&P Global Water Index ETF
- Current Price: $ 49.72
- 52-Week Range: $ 30.98 – $ 49.67
- Dividend Income: %1,33
- Cost Rate: %0,57
Following the S&P Global Water Index, CGW has 50 assets. On a sectoral basis, industrial products and services have the largest weight with 47.86%, followed by public services (41.28%) and information technology (6.03%).
The ETF has yielded close to 6% since the beginning of the year and reached a historic high on April 1. The last 12 months price-earnings and price-book value ratios are 30.37 and 2.90, respectively. Potential long-term investors will find a better value around $ 45.
Note: If you are interested in the financial products mentioned above but cannot find these products in your area, you may want to contact your brokerage firm or financial planner.
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Editor’s Note: Not all assets analyzed may not be available in all regional markets. Please contact an authorized brokerage firm or financial advisor to find similar financial instruments that may suit you. This content is for informational purposes only. Before making any investment decision, you should do your own detailed research.