AQWA Profile
The Global X Clean Water ETF seeks to provide investors with targeted exposure to companies engaged in the clean water sector. The fund invests at least 80% of its total assets, including any borrowings for investment purposes, in the securities of the underlying index, as well as American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on these securities. The underlying index is specifically designed to include companies that are actively involved in the provision of clean water, encompassing various segments such as water utilities, infrastructure, equipment, technology, and pollution control.
By focusing on the clean water industry, the Global X Clean Water ETF aims to capture the growth potential of a sector that is increasingly critical due to global challenges such as population growth, urbanization, and climate change. The companies within the underlying index are selected based on their significant business operations in areas related to clean water provision, including water treatment, purification, and distribution. This approach provides investors with a diversified portfolio of companies that are at the forefront of addressing water scarcity and improving water quality worldwide.
The ETF's investment strategy involves not only direct investments in the underlying securities but also in ADRs and GDRs, which allows for broader international exposure and access to companies listed outside the United States. This global perspective is crucial as water issues are a worldwide concern, and leading solutions and innovations are being developed across different regions. The inclusion of ADRs and GDRs helps ensure that the fund's holdings reflect the global nature of the clean water industry and its various market opportunities.
As a non-diversified fund, the Global X Clean Water ETF concentrates its investments in a specific sector, which may lead to higher volatility compared to more diversified funds. However, this focus allows the ETF to provide concentrated exposure to the clean water industry, offering investors a way to invest in companies that are poised to benefit from the increasing demand for sustainable water solutions. Managed by Global X, a company known for its thematic and innovative approach to ETFs, this fund represents a strategic investment opportunity for those looking to align their portfolios with the growing importance of environmental sustainability and resource management.
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