What is the water industry?
What is water? This seems like a trick question right? Unbeknown to most, the water industry is deeper than merely companies involved with providing drinking water and filling tanks to be used for personal hygiene, pools and watering the garden.
Rather, the water industry can be divided into three main categories: urban water management; agriculture; and industrial production. At present, about 10% of water flows into domestic use, 70% into agriculture, and the remaining 20% to industrial production.
In industrial production, almost 75% of all water is used for energy production and cooling. Yet, agricultural production is the world’s heaviest user of water in production, mainly for irrigation and food production. Whereas in urban areas water is used for personal consumption and sanitation.
Within these broad categories exist many sub-categories - for example, waste water management falls under the urban water management umbrella. Thus, the companies involved in the global water industry comprise a list that meanders through many different industries.
The list of industries and processes that require water as an input is seemingly endless, and demand is on an upwards trajectory.
Why invest in global water?
The reasons to invest are twofold: firstly, water is currently undervalued; and, secondly, the global water industry is engaged in a noble, upstream battle to provide every person with access to clean water and sanitation.
Basic economic principles suggest that the value attached to water is set to rise. Simply put, the supply of water is limited and the demand for water is rising. Water withdrawals have increased dramatically, from 600 cubic kilometres in 1990 to a projected 6900 cubic kilometres in 2030. Furthermore, the water available for energy production will require a 20 to 30% increase to meet future needs. For this reason, the water price in many countries is still too low to accurately reflect its value.
As populations continue to grow, existing infrastructure continues to age, and the higher quality water is demanded in the face of climate change, many investment opportunities are predicted to arise in the global water market. Estimates expect the value of the water theme to reach $1 trillion by 2025.
With no sign of demand drying up, the water theme presents significant growth opportunities.
What’s in this the Bundle?
If you want to be smart about investing in the global water industry, you have to thoroughly research, analyse and understand the background of the individual businesses within the industry while also staying on top of the latest regulatory updates. That's where things start to get complicated and time consuming.
This is where we come in.
We offer you access to a diversified investment Bundle that provides broad exposure to the water theme through an industry-leading exchange traded fund (ETF).
This is the iShares Global Water UCITS ETF, which includes companies from across the water theme ecosystem. The underlying S&P Global Water Index offers diversified exposure to 50 leading companies in the water themes, focusing on the utilities and infrastructure, and equipment and materials subdivisions.
The benefits of investing using ETFs
There are thousands of ETFs in the marketplace, covering all sorts of different parts of the financial markets. These are pooled investment vehicles that allow thousands or even millions of investors to own shares in a large basket of investments that typically share some common trait. Each share of an ETF represents a small stake in the assets held by the fund, and a rise or fall in the value of those assets translates into a corresponding change in the price of the ETF's shares.
Each ETF is designed with a specific investment objective in mind. Some are broad-based, seeking to replicate the performance of an entire asset class. For instance, one of the biggest ETFs covers all 500 stocks in the S&P 500 Index. Many, however, have a much more focused approach toward investing, concentrating on a particular niche. It's this second category that cannabis, eSports, AI, biotech and all of our other offered Bundled ETFs fall into.
The biggest benefit of investing in ETFs is the instant diversification they provide. By buying even one share of such an ETF, you can participate in the performance of all of the assets that the ETF holds. It would take a lot of money to build an individual investment portfolio with as much diversification as what an ETF can offer.
Many people choose to buy a small number of individual stocks, leaving themselves highly exposed to the fortunes of those particular companies. As a result, if something bad happens to those stocks but does not affect the entire theme, these investors are at risk of big losses even if the industry as a whole is doing well.
Other potential advantages of ETFs include being generally more tax-efficient than comparable traditional mutual funds, transparent daily holdings, and the ability to be traded intraday during market hours.
Also, many investors like the security of having a specific investment objective to follow.
What is water? This seems like a trick question right? Unbeknown to most, the water industry is deeper than merely companies involved with providing drinking water and filling tanks to be used for personal hygiene, pools and watering the garden.
Rather, the water industry can be divided into three main categories: urban water management; agriculture; and industrial production. At present, about 10% of water flows into domestic use, 70% into agriculture, and the remaining 20% to industrial production.
In industrial production, almost 75% of all water is used for energy production and cooling. Yet, agricultural production is the world’s heaviest user of water in production, mainly for irrigation and food production. Whereas in urban areas water is used for personal consumption and sanitation.
Within these broad categories exist many sub-categories - for example, waste water management falls under the urban water management umbrella. Thus, the companies involved in the global water industry comprise a list that meanders through many different industries.
The list of industries and processes that require water as an input is seemingly endless, and demand is on an upwards trajectory.
Why invest in global water?
The reasons to invest are twofold: firstly, water is currently undervalued; and, secondly, the global water industry is engaged in a noble, upstream battle to provide every person with access to clean water and sanitation.
Basic economic principles suggest that the value attached to water is set to rise. Simply put, the supply of water is limited and the demand for water is rising. Water withdrawals have increased dramatically, from 600 cubic kilometres in 1990 to a projected 6900 cubic kilometres in 2030. Furthermore, the water available for energy production will require a 20 to 30% increase to meet future needs. For this reason, the water price in many countries is still too low to accurately reflect its value.
As populations continue to grow, existing infrastructure continues to age, and the higher quality water is demanded in the face of climate change, many investment opportunities are predicted to arise in the global water market. Estimates expect the value of the water theme to reach $1 trillion by 2025.
With no sign of demand drying up, the water theme presents significant growth opportunities.
What’s in this the Bundle?
If you want to be smart about investing in the global water industry, you have to thoroughly research, analyse and understand the background of the individual businesses within the industry while also staying on top of the latest regulatory updates. That's where things start to get complicated and time consuming.
This is where we come in.
We offer you access to a diversified investment Bundle that provides broad exposure to the water theme through an industry-leading exchange traded fund (ETF).
This is the iShares Global Water UCITS ETF, which includes companies from across the water theme ecosystem. The underlying S&P Global Water Index offers diversified exposure to 50 leading companies in the water themes, focusing on the utilities and infrastructure, and equipment and materials subdivisions.
The benefits of investing using ETFs
There are thousands of ETFs in the marketplace, covering all sorts of different parts of the financial markets. These are pooled investment vehicles that allow thousands or even millions of investors to own shares in a large basket of investments that typically share some common trait. Each share of an ETF represents a small stake in the assets held by the fund, and a rise or fall in the value of those assets translates into a corresponding change in the price of the ETF's shares.
Each ETF is designed with a specific investment objective in mind. Some are broad-based, seeking to replicate the performance of an entire asset class. For instance, one of the biggest ETFs covers all 500 stocks in the S&P 500 Index. Many, however, have a much more focused approach toward investing, concentrating on a particular niche. It's this second category that cannabis, eSports, AI, biotech and all of our other offered Bundled ETFs fall into.
The biggest benefit of investing in ETFs is the instant diversification they provide. By buying even one share of such an ETF, you can participate in the performance of all of the assets that the ETF holds. It would take a lot of money to build an individual investment portfolio with as much diversification as what an ETF can offer.
Many people choose to buy a small number of individual stocks, leaving themselves highly exposed to the fortunes of those particular companies. As a result, if something bad happens to those stocks but does not affect the entire theme, these investors are at risk of big losses even if the industry as a whole is doing well.
Other potential advantages of ETFs include being generally more tax-efficient than comparable traditional mutual funds, transparent daily holdings, and the ability to be traded intraday during market hours.
Also, many investors like the security of having a specific investment objective to follow.
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