FIW Profile
The First Trust Water ETF is designed to provide investors with exposure to the global water industry by focusing on companies involved in the potable water and wastewater sectors. The fund generally allocates at least 90% of its net assets, including investment borrowings, to common stocks and depositary receipts that are part of the index it tracks. This strategic allocation ensures that the fund remains closely aligned with the performance of its benchmark, which is specifically curated to represent the water industry.
The underlying index, developed in partnership with Clean Edge, is crafted to reflect the performance of companies across small, mid, and large capitalization categories that derive a significant portion of their revenues from the water sector. This includes firms engaged in the infrastructure, technology, and service segments related to water treatment, distribution, and management. By focusing on a diverse range of companies, the fund aims to capture a broad spectrum of opportunities within the water industry.
Investments in the First Trust Water ETF cover a variety of key areas within the water industry, such as companies that provide essential services for water purification, wastewater treatment, and water resource management. The fund’s holdings may include businesses that design and implement advanced technologies for water conservation, as well as those that develop innovative solutions to address global water challenges. This broad exposure helps investors benefit from the growth potential driven by increasing demand for clean water and sustainable water management solutions.
By investing in the First Trust Water ETF, investors gain access to a specialized portfolio of companies positioned to capitalize on the critical need for water infrastructure and technology advancements. However, potential risks include sector-specific challenges, regulatory changes, and fluctuations in global water demand. The fund is suited for investors looking to diversify their portfolios with exposure to an essential and growing industry that addresses fundamental global needs related to water sustainability and environmental stewardship.
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