A Smart Beta ETF Approach to the Flowing Water Industry

Tortoise Index Solutions has expanded on its infrastructure theme with its second exchange traded fund that tracks water companies to capitalize on the potential needed investments to expand the water industries.

The newly launched Tortoise Water Fund (BATS: TBLU) will try to reflect the Tortoise Water Index. TBLU has a 0.40% expense ratio.

“Water is critical for economic growth and social stability. We believe that there is a tremendous need in the market for a quality index that accurately represents the water industry,” Jeremy Goff, Tortoise director, said in a note. “Creating this product is a natural extension of our strategy to provide essential asset solutions in wrappers that are desired by advisors and investors.”

The ETF will allow investors to benefit from the expected and much needed investment to rebuild existing infrastructure, construct new infrastructure and better manage and enhance the sustainability of the finite resource.

The Tortoise Water Index is a rules-based, modified cap-weighted, float adjusted index designed to track water companies or companies that derive significant revenue from either water infrastructure or water management, including public water distribution or supporting/enhancing water distribution infrastructure via equipment, engineering and/or consulting, along with water distribution and usage companies engaged in water efficiency, water treatment, and irrigation.