Quote:
Originally Posted by krunic
Water will get more scarce as the population increases obv. But how do the companies held in this etf make money? Are there companies holding stockpiles of water somewhere? Is it companies that make water treatment equipment? Companies that sell bottled water?
It's diversified with different industries.
From the prospectus,
"The Index is comprised of 50 securities selected based on the relative importance of the global water industry within the company’s business model. The Index is designed to have a balanced representation from different segments of the water industry consisting of the following two clusters: 25 water utilities and infrastructure companies (water supply, water utilities, waste water treatment, water, sewer and pipeline construction, water purification, water well drilling, water testing) and 25 water equipment and materials companies (water treatment chemicals, water treatment appliances, pumps and pumping equipment, fluid power pumps and motors, plumbing equipment, plumbing pipes, fluid meters and counting devices) based upon S&P’s Capital IQ (“CIQ”) business development and segment breakdown. To determine whether global demand for water is a major component of a company’s business, the Index Provider implements the following methodology:"
For my fundamental research for ETF's and mutual funds I use Morningstar.com. You can view the funds prospectus there to.