It is not easy to get investors excited about water, but the truth is this market is projected for very solid growth into the next decade. A recent forecast from Global Water Intelligence (GWI) projects that the global water market will reach $914.9 billion by 2023.
However, this projection has been complicated by the downtick in the oil and gas industry. On the other hand, there is increased demand for wastewater treatment projects in Southeast Asia, and a rise in expenditure on water and wastewater by the mining industry.
The iShares Global Water Index ETF (TSX:CWW) gives investors a chance to get in on this growing market. The ETF seeks exposure to issuers from developed markets that are selected going by their relative importance of the global water industry within their business models.
This ETF is diversified in several segments including water utilities and infrastructure companies and water equipment and materials companies.
Some of the top holdings in the ETF include American Water Works, which is the largest United States investor-owned water and wastewater services company. Xylem, an American water technology provider, enables its customers to transport, treat, test and use water across key settings.
The ETF has climbed 13% in 2019 as of close on August 12. This is after a 2% drop in 2018. The ETF had railed off six consecutive years of positive gains before that. Investors should put their trust in this market ahead of the next decade.
