The AQWA ETF Isn't Just Water Under the Bridge

Fine print in the infrastructure bill in the House of Representatives shows support for clean water, which should help the Global X Clean Water ETF (AQWA).

“The Infrastructure Investment and Jobs Act features significant and vital potential investment in clean water infrastructure and environment, totaling ~$84B,” a Global X analysis said. “Everyday, tens of millions of Americans drink contaminated water.3 The bipartisan infrastructure bill seeks to address this, improving public health and more in the process.”

AQWA seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Clean Water Industry Index. The fund invests at least 80% of its total assets, plus borrowings for investments purposes (if any), in the securities of the underlying index and in ADRs and GDRs based on the securities in the underlying index, which is designed to provide exposure to companies that have business operations in the provision of clean water.

While the majority of its holdings reside in the United States, AQWA also provides global diversification with exposure to other countries. That list includes Britain, France, and Japan, to name a few.

Select benefits of AQWA:

  • Long-Term Growth Potential: AQWA enables investors to access long-term growth potential through companies at the leading edge of the clean water theme.
  • Unconstrained Access: The ETF’s composition transcends classic sector, industry, and geographic classifications.
  • A Conscious Approach: AQWA incorporates Environmental, Social, & Governance (ESG) screens and follows ESG proxy voting guidelines to affect positive change alongside financial returns.

Big Dollars in Clean Water Projects

Looking specifically at the clean water projects, big dollars look to be headed toward infrastructure plans.

“The bill includes $63B of new spending on water infrastructure,” the Global X analysis said. “$55B of this spending will be directed to water distribution infrastructure enhancements and assorted clean drinking water initiatives, including the full replacement of all lead pipes, funding for wastewater management, and investment in technologies that enhance water treatment, monitoring, and sustainability.”

“The bill seeks to address the impacts of legacy pollution that impacts water quality and public health by investing $21B in environmental remediation projects,” the analysis added further. “These projects include cleaning up superfund and brownfield sites, as well as plugging orphaned oil and gas wells.”

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